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Ukraine Prohibits Hryvnia-based Bitcoin purchases

The use of the local fiat money, the Hryvnia, to purchase Bitcoin (BTC) has been prohibited in Ukraine. The National Bank of Ukraine, the country’s central bank, has imposed a variety of new limits on crypto payments and purchases, according to the bank. People in the country have expressed a significant desire to trade their local money for Bitcoin or other virtual currencies. Some of the money was then sent overseas.

Hryvnia is used to purchase Bitcoin and other cryptocurrencies in Ukraine.

The National Bank of Ukraine has prohibited crypto and Bitcoin purchases in Hryvnia due to the current conflict. The policy was established in order to prevent money from leaving the nation.

Despite the fact that the prohibition is just temporary, it is already having an impact on consumers who regularly purchase digital currencies.

According to Ukraine’s national bank, Ukrainian banks have transferred more than $1.7 billion abroad. At the moment, the only way for Ukrainians to buy virtual currencies is to use foreign currency. The monthly maximum for each person is $3,300.

The National Bank of Ukraine says in a statement:

“The National Bank of Ukraine estimates that said changes will improve conditions on the foreign exchange market,”
” which is a prerequisite for further easing the restrictions and relieving pressure”
“on Ukraine’s international reserves.”

People from all over the world have been using Bitcoin and other virtual currencies to get around capital controls during the last few years. In recent years, some countries have imposed limits on crypto and foreign currency purchases for a variety of reasons.

This comes after Ukraine took a firm stance against cryptocurrency adoption in the country. Ukraine authorized virtual currencies in February, and the country received millions of dollars in Bitcoin and other virtual currencies during the early days of the conflict. Bitcoin and crypto donations to Ukraine topped $50 million in just two days of the battle, as previously reported by UseTheBitcoin.

This demonstrates that the move to prohibit crypto purchases in local currency comes at a time when the Hryvnia is under significant strain.

Let us not forget that the war in Ukraine is costing both sides a lot of money. Ukraine continues to obtain credit from other nations, but the local currency appears to be depreciating even more as military spending rises.

Bitcoin is now trading for around $39,640 and has a market capitalization of $753 billion at the time of writing this article. Bitcoin has lost 2.4 percent in the last 24 hours.

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Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.