National Bank of Ukraine imposed restrictions on the purchase of cryptocurrency for hryvnias

This measure is designed to prevent capital outflow from the country

22.04.2022 - 10:10

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What’s new? The National Bank of Ukraine (NBU) has published a list of restrictions on quasi cash transactions from citizens’ hryvnya accounts. In question are cryptocurrency transactions, replenishment of brokerage accounts, e-wallets, payment of traveler’s checks, purchase of gift certificates, etc. The limit for such transactions is 100 000 Ukrainian hryvnias per month, this restriction also applies to cross-border P2P transfers.

News on the NBU’s website

What is the reason for imposing restrictions? The ban on quasi cash transactions is intended to prevent capital outflow from Ukraine under martial law. According to the estimates of the NBU, the relevant changes will contribute to improving the currency market’s conditions, as well as reducing the pressure on Ukraine’s international reserves.

The restrictions are imposed on individuals. In this, the implemented changes will not affect the use of payment cards abroad or in Ukraine to pay for goods or services.

What had happened before? On March 15, Ukraine’s President Volodymyr Zelenskyy signed the law “On Virtual Assets.” The document set out the rules for the operation of market participants, taxation, income declaration, and interaction with regulators. After the adoption of amendments to the Tax Code of Ukraine, the sphere of crypto assets will operate in a completely legal field.

However, digital currencies will still not be able to be used as a means of payment and exchanged for goods or services. Cryptocurrencies are equated with an intangible benefit, which has a value, can be expressed in electronic form, and is not an object of civil rights.

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