Crypto Exchange Binance Suspend Transactions in Ukraine’s Hryvnia

Leading crypto exchange platform Binance and Ukrainian exchange Kuna have announced the temporary suspension of transactions with the hryvnia bank cards. This was after confirming the problems that arise with such transactions since the Ukrainian government has placed a restriction on the use of its national currency for fiat deposits and withdrawals on exchange platforms.

Following this restriction by the National Bank of Ukraine and the attendant inconvenience, Binance has suggested that its Ukrainian users use their peer-to-peer services as the banks are not permitting the buying and selling of cryptocurrencies with the use of the national currency. The peer-to-peer service allows users to exchange crypto and fiat currencies directly without intermediaries like banks.

As noted by Micheal Chobanian the founder of Kuna, the move was part of the plans of the Ukrainian government to check money laundering and tax invasion through online gambling sites.

Crypto aids donations in Ukraine

However, Chobanian believes that this restriction will limit Ukraine’s crypto adoption and also negatively affect the activities of both small and medium-scale businesses. The restrictions could also impact the nation’s crypto donation.

As previously reported Ukraine has received over $70 million in cryptocurrency giving the country money for military hardware and humanitarian aid since the beginning of its conflict with Russia. The bulk of this fund was in the form of Ether, Bitcoin, and NFTs and about % of the nation’s suppliers accepted payments in crypto. 

Even while the market was on a steady decline Alex Bornyakov, Ukraine’s minister of digital transformation affirmed that crypto has become an essential tool in the defense of the nation as it offered a solution when limitations were put on the Ukrainian banking system and it literally saved the lives of its soldiers.

Recall that in the first quarter of 2022, investors in Ukraine were unable to buy Bitcoin (BTC) from the nation’s largest savings bank called PrivatBank. However, the report comes shortly after the President of the nation, Volodymyr Zelenskyy, officially signed the regulatory framework for blockchain-based assets and legalized cryptocurrencies.