Ukraine prohibits residents from buying cryptocurrency for local currency

Ukraine imposes restrictions on investments in cryptocurrencies in an attempt to maintain the stability of the local currency.

Cryptocurrencies have been around for a long time. Based on these new technologies, large-scale projects have emerged, and digital currencies have already helped many in need. Including organizations and countries, such as Ukraine, in its struggle with Russia. At the same time, restrictions should be established in the country today.

Ukraine introduces restrictions on crypto investments

Although Ukraine has indeed taken a rather favorable stance towards cryptocurrencies in recent months, due to the current crisis, the country has had to introduce a number of restrictions. He just announced that these residents are no longer eligible to buy digital assets with the local Ukrainian currency, the hryvnia.

Ukrainians who would like to buy cryptocurrency must now use foreign currency, and even then, purchases will be limited to 100,000 hryvnia per month, or just 3,080 euros per month at the current exchange rate.

In a statement, the National Bank of Ukraine says that in this way it is trying to “prevent an unproductive outflow of capital from a country under martial law.”In the current situation, investments in cryptocurrencies are perceived as “transactions with cash or almost” and fall, in fact, into the same category as brokerage services, forex accounts and traveller’s checks.

Ukrainians who have been forced to leave the country will be able to continue using their cards to buy goods and services, even if that means their hryvnias will eventually be converted into other currencies.

in an attempt to maintain the stability of the local currency

The leadership in Kyiv is doing everything possible to ensure that the hryvnia remains a stable currency, hence the desire to limit investments in crypto.

Ukraine has also received tens of millions of dollars worth of cryptocurrency donations since the Russian invasion began almost two months ago. These funds went to help civilians and equip the Ukrainian military. Last month, President Volodymyr Zelensky signed a new law legalizing crypto assets in the country.