Central Bank of Ukraine Bans Buying Crypto With Local Currency Bank Accounts

Ukraine’s central bank has announced new restrictions on crypto purchases (and other “near-cash” transactions).

According to an announcement made on April 21 by the National Bank of Ukraine (NBU), holders of local currency (UAH) bank accounts are now no longer allowed to use these accounts to buy crypto. As for foreign currency accounts (e.g. US dollar accounts), it is still possible to buy cryptos with such accounts, but now there is a limit of 100,000 UAH (about 3,400 USD) per month.

The central bank explained that the purpose of these restrictions was “to prevent unproductive outflows of capital from the country under martial law“. They still allow person-to-person transfers to overseas bank accounts (from local and foreign currency accounts), but a limit of UAH 100,000 per month per legal entity applies. The bank went on to point out that “the changes do not apply to the use of payment cards abroad and in Ukraine for payments to pay for goods, works and services which can be carried out without restrictions” .




According to a report by Cointelegraph published on April 22, “some Ukrainian banks have already adopted such restrictions, according to several sources. For example, apparently, “PrivatBank, Ukraine’s largest commercial bank, reportedly banned its customers from buying BTC with UAH in mid-March.”

The central bank restrictions have managed to surprise some people since the Ukrainian government is “actively working to legalize cryptocurrencies under martial law”. As you may already know, on March 16, Ukraine’s Ministry of Digital Transformation issued a press release announcing that President Volodymyr Zelensky had just signed “Ukrainian Law “On Virtual Assets”, which was adopted by the Verkhovna Rada of Ukraine on February 17.”

Warning

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading crypto-assets involves the risk of financial loss.

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About Charles D. Goolsby

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