National Bank of Ukraine restricts cross-border crypto purchases with local currency.
In order to facilitate financial support for Ukrainian refugees abroad, the NBU allows Hryvnia account holders to make cross-border P2P transfers within the 100,000-hryvnia monthly limit. However, the central bank emphasized that quasi cash transactions from these accounts in national currency are temporarily prohibited.
The National Bank of Ukraine insists that these rules will help to improve the country’s foreign exchange market, which it considers a precondition for easing restrictions in the future. The regulator is also convinced that the measures will reduce the pressure on Ukraine’s foreign currency reserves.
The Ukrainian foreign exchange market has processed significant volumes of foreign currency purchases by local banks for settlements with international payment systems. Such transfers reached $1.7 billion in March. The demand for these settlements stems from the increased use of cards issued by Ukrainian banks to accounts in national currency for the purchase of goods and services outside the country.
Bank cards are also employed in quasi cash transactions that the NBU says are mainly carried out to circumvent its restrictions, particularly for investing abroad which is prohibited under the current martial law. The bank notes, however, that the new limitations do not apply to the use of cards to pay for goods and services in Ukraine and outside the country.