Ukraine’s National Bank has temporarily prohibited its citizens from making overseas transactions related to money and assets transfers exceeding UAH 100000 i.e. $3400 approx. per month. According to a news report, this will impact crypto related transactions as well.
National Bank of Ukraine which is Ukraine’s Central bank, has banned (though temporarily) from making quasi cash transactions exceeding. UAH is Ukrainian Hryvnia which is Ukraine’s fiat currency.
Quashi cash transactions involve purchase of foreign currencies and assets including casino tokens/chips, lottery tickets etc.
Through an official notice, the bank has also clarified as, “…We remind you that quasi cash transactions include: replenishment of electronic wallets, brokerage or forex accounts, payment of traveler’s checks, purchase of virtual assets, etc…”
The bank has stated that such restrictions on cross border transactions of money transfers are being imposed in order to prevent “unproductive capital outflows”.
The bank has further clarified that such restrictions are not applicable to transactions involving any payments made to pay for goods, works and services.
Ukraine is presently fighting war with Russia and has suffered heavy loss of human lives as well as capital assets.
As reported earlier, donations in the form of Bitcoin, Ethereum and Tether aided in donating millions of euros to the war-torn Ukraine.
However, due to war situation, there is apprehension among the government in Ukraine that there might be outflow of money from Ukraine through crypto transactions. In order to prevent this outflow, the National Bank has taken the step of imposing limit ban on such transactions.
These apprehensions of capital outflow from one country to another country through private crypto currencies such as Bitcoin, Ether etc. also underline one of many negatives attached with crypto currencies.
Many countries have spoken of bringing laws to regulate these private currencies. Some have already announced to issue their own digital currency in near future.
In the meantime, some crypto trading platforms in Ukraine have been reported to have stated that the restrictions imposed on cross border transactions by Ukraine will not impact their business.
