In order to reduce the risk of capital outflows, the National Bank of Ukraine has decided to prohibit Ukrainian residents from purchasing cryptocurrencies using the hryvnia, Ukraine’s monetary currency. This judgment comes just a month after the enactment of a law aimed at regulating and enabling access to cryptocurrencies in the country.
According to a statement issued by the National Bank of Ukraine (NBU) on Thursday, 21 April, it will no longer be possible for Ukrainian citizens to purchase cryptocurrency in hryvnia, the local currency.
The central bank intends to reduce the risks of capital outflows from the country as part of the martial law that was extended on March 26. According to the announcement, Ukrainian citizens would still be able to acquire cryptocurrencies in foreign currency if their monthly spending does not exceed 100,000 hryvnias, or around $3,400.
According to the press release, the prohibition on cryptocurrency purchases is just temporary:
“These relevant changes will help improve the foreign exchange market, which is a necessary prerequisite for easing restrictions in the future, as well as reducing the pressure on Ukraine’s international reserves. »
Purchases of cryptocurrencies are thus assimilated to “quasi-monetary transactions” by the NBU, in the same way as foreign exchange transactions, deposits in electronic wallets, and trip payments are.
“Cash-like transactions […] are mainly carried out to circumvent the current restrictions of the National Bank, in particular, to invest abroad, which is prohibited by martial law. Therefore, the transactions concerned must be interpreted as causing outflows of unproductive capital.”
While the Russian-Ukrainian war continues to be a hot topic, the NBU was able to see that the equivalent of 1.7 billion dollars was transferred out of the country’s banks in March alone, with another 900 million dollars still pending for April.