Crypto exchanges Binance and Kuna suspend card transactions in Ukrainian hryvnia – Exchanges
Major cryptocurrency exchanges operating in Ukraine have temporarily suspended operations with hryvnia bank cards. The measure follows restrictions imposed by the country’s central bank, Binance and Kuna, stated in comments for crypto media.
Ukrainians cannot trade crypto assets with local currency cards
The world’s largest crypto exchange Binance and a leading Ukrainian exchange Kuna have announced a temporary suspension of operations with bank cards denominated in Ukrainian hryvnia. Both trading platforms confirmed the problems with such transactions.
The restricted processing of deposits and withdrawals in local currency stems from restrictions imposed by the National Bank of Ukraine (NBU), Binance officials told crypto news outlet Forklog. The exchange has advised traders to use its peer-to-peer marketplace.
“Currently, fiat channels, namely deposits and withdrawals via a bank card and other payment services, are temporarily suspended on cryptocurrency exchanges across Ukraine,” the trading platform explained in a Telegram post quoted by Bits.media on Thursday.
“Regarding the hryvnia card and input/output to the exchange. Yes, it doesn’t work… In short, we are looking for ways out of the situation under the threat of stopping the entire Ukrainian crypto/card UAH market,” said Kuna founder Michael Chobanian on his Telegram channel.
On Friday, Chobanian hinted that difficulties in non-cash hryvnia transactions may be related to Ukrainian authorities’ efforts to stop money laundering and tax evasion by online gambling sites.
He was referring to a recent statement by a Ukrainian lawmaker who claimed that this type of turnover amounts to 54 billion hryvnia (nearly $1.5 billion) annually. MP Oleksiy Zhmerenetsky later confirmed that he sees a connection between the two.
Hryvnia restrictions on exchanges likely to impact crypto donations to war-torn Ukraine
Problems with hryvnia deposits and withdrawals on crypto exchanges began in September last year, and since the end of December the restrictions imposed by the central bank have become stricter, Chobanian explained. He further elaborated:
The NBU has banned P2P and A2C transactions for financial companies and since all crypto exchanges work through them, everything is gone for them.
Chobanian believes the restrictions are causing reputational damage to Ukraine, a leader in crypto adoption in the region and beyond. He believes that the situation will also affect the activities of small and medium-sized businesses and donations in cryptocurrency will affect.
Recent reports of BlockchainIntelligence firms Elliptic and Chainalysis revealed that since the Russian invasion began in late February 2022, Ukraine has raised over $212 million in crypto for defense and humanitarian efforts, of which $70 million was provided by government addresses.
In late April, the National Bank of Ukraine imposed a monthly transaction limit on cryptocurrency purchases of 100,000 hryvnia per person ($3,400 then, about $2,700 today). The Monetary Authority is yet to comment on the impact of its restrictions on the country’s crypto market.
Do you think that Ukrainian authorities will remove restrictions on hryvnia transactions with crypto exchanges in the future? Do share your thoughts on this topic in the comments section below.
photo credit: Shutterstock, Pixabay, WikiCommons
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Source: Crypto News Deutsch
