Privatbank, Ukraine’s largest commercial bank, temporarily stopped the transfer of Ukrainian national currency to digital asset swaps. The financial institution explained the move with restrictions imposed by the country’s central bank under the current martial law.
A leading bank in Ukraine bans clients from sending Hryvnia or Crypto Trading Platforms to their accounts
Ukraine’s largest bank in terms of assets, Privatbank, has prohibited its clients from transferring funds in Ukrainian hryvnia, the national fiat currency, to exchanges trading cryptocurrencies. On March 16, the temporary ban was implemented.
Forklog quotes a statement as saying that this measure is a result of a resolution of the National Bank of Ukraine (NBU), which was issued on Feb. 24, when Russia began its military invasion of Ukraine.
It does not mention cryptocurrency-related transactions but regulates banking operations under martial law. The maximum cash withdrawal amount was 100,000 hryvnia. $3,400) daily and the hryvnia’s exchange rate was fixed.
Privatbank stated that banks are not allowed to transact cross-border currency transfers from Ukraine for clients. The bank explained that funds can be transferred to use on cryptocurrency exchanges.
The report notes that Binance, the world’s leading crypto exchange by trading volume, has confirmed the news of Privatbank’s decision regarding hryvnia deposits. It warns users that others banks might do the same, and recommends they switch to peer-to–peer trading.
To fund its military efforts against the advancing Russian forces, and to address growing humanitarian needs, Ukraine accepts crypto donations. The ban comes despite President Volodymyr Zelenskyy signing this week the country’s new law “On Virtual Assets.”
You can support Ukrainian families, children, refugees, and displaced people by donating BTC, ETH, and BNB to Binance Charity’s Ukraine Emergency Relief Fund.
What do you think about other Ukrainian banks imposing similar restrictions in the future? Please share your thoughts in the comment section.
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