Ukrainian banks restrict crypto withdrawals

crypto fraud

Recently, Ukraine put a temporary halt the use of its national currency, the hryvnia, via banking cards for fiat deposits and withdrawals on crypto exchanges. The regulation of restriction comes as a surprise to many in the industry as Ukraine has seen an influx of support via cryptocurrencies throughout the Russian-Ukranian conflict.

According to data by Chainalysis, cryptocurrencies that were donated to Ukraine wallets provided by the Ukrainian government. Ukrainian deputy digital minister Alex Bornyakov noted:

If we used the traditional financial system, it was going to take days […] We were able to secure the purchase of vital items in no time at all via crypto, and what is amazing is that around 60% of suppliers were able to accept crypto, I didn’t expect this.”

As a result of the suspension, the way investors can move funds to and from exchanges has been significantly impacted. To mitigate a lack of payments into and out of exchanges, Binance has issued a reminder to users that peer-to-peer (P2P) services come in handy when trading cryptocurrencies.

Cryptocurrency exchanges including Binance and local crypto exchange Kuna have made official announcements to investors to acknowledge the disrupted service owing to Ukraine’s central bank’s decision. In the announcement, the exchanges note that the regulatory changes should have no impact on the cryptocurrency ecosystem and shouldn’t directly effect Bitcoin ($BTC). Michael Chobanian, Kuna’s founder, explained:

Transalting to:

“Regarding card hryvnia and input/output to the stock exchange. Yes, it doesn’t work. Yes, it doesn’t work for everyone. There are many nuances about which I will try to tell tomorrow when I get a fresh update. [In short] – We are looking for a way out of the situation, under the threat of stopping the entire Ukrainian crypto/card hryvnia market. p.s. It’s a good thing that the bull has no regulator. #incryptowetrust.”

Binance offered an alternative solution to investors to continue trading, buying, and withdrawing cryptocurrencies pointing to the P2P service to circumnavigate using the banks to use its services. These P2P services allow users to exchange directly with one another using the platform as a gateway.

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