Ukraine’s central bank has temporarily suspended the use of the hryvnia, the national currency, via banking cards for fiat deposits and withdrawals on crypto exchanges.
This move has immediately impacted how investors move funds to and from exchanges, causing inconvenience for users of crypto exchanges like Binance and others. These exchanges have made official announcements informing investors of the situation.
Michael Chobanian, the founder of local crypto exchange Kuna, acknowledged the service disruption and promised to explain the nuances of the development later. However, he also pointed out that such regulatory decisions do not impact the Bitcoin ecosystem.
Chobanian further stated that Kuna is looking for ways to overcome the situation, threatening to halt the Ukrainian crypto/card UAH market.
Binance also acknowledged the problem as regulators suspended the use of hryvnia on crypto exchanges. However, the company suggested an alternative solution.
The exchange proposes using the P2P service, which allows users to exchange crypto and fiat currencies directly with other users without needing a middle-person like banks. Binance utilized the occasion to inform users about the benefits of P2P services.
This anti-crypto stance by Ukraine comes as a shock, especially considering the country’s net worth of over $70 million in crypto donations since the start of the Russian-Ukrainian conflict.
Ukrainian deputy digital minister Alex Bornyakov stated that crypto was crucial in securing the purchase of vital items in no time, and around 60% of suppliers could accept crypto.
In conclusion, regulatory decisions by Ukraine’s central bank have impacted the country’s crypto exchanges, causing inconvenience for investors. However, both Binance and Kuna seek ways to overcome the situation.
The decision of Ukraine’s central bank affects all traders using hryvnia, Ukraine’s national currency, to trade on crypto exchanges such as Pionex, forcing them to look for alternatives to continue their trading activity.
P2P services remain an alternative solution, and users can exchange crypto and fiat currencies directly with other users. How this situation will unfold in the coming days remains to be seen.
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