The National Bank of Ukraine (NBU) is invoking martial law by banning the purchase of cryptocurrency in Ukrainian Hryvnia (UAH).
- Ukrainians can only spend upwards of UAH 100,000 ($3,300) in foreign currency per month on quasi cash transactions, stated the NBU. The limit also applies to cross-border P2P transactions.
- Quasi cash transactions include the purchase of cryptocurrencies, replenishment of electronic wallets, purchase of virtual assets, and brokerage or forex accounts.
- The ban aims to curb the “unproductive outflow of capital from the country under martial law,” while reducing pressure on Ukraine’s international assets. This will help maintain the health of the UAH in forex markets.
- This ban comes soon after President Zelenskyy signed a bill that created a legal framework for regulating digital assets such as Bitcoin and Ethereum.
- Since the beginning of Russia’s invasion of Ukraine, the country has raised over $100 million in crypto donations, including an NFT project.