Ukraine Bans Buying Bitcoin with Local Currency (Hryvnia): What You Need to Know

Recent regulations in Ukraine have significantly impacted the cryptocurrency market. The National Bank of Ukraine (NBU) has implemented measures restricting the purchase of cryptocurrencies, including Bitcoin (BTC), using the local fiat currency, the hryvnia (UAH).

Why the Ban?

The ban, largely implemented under martial law since the invasion, aims to curb capital outflows. As the National Bank of Ukraine said, the temporary ban seeks to prevent capital flight and stabilize the national currency during this challenging period. This restriction is part of a broader set of limitations on cross-border operations.

What Does the Ban Mean for Ukrainians?

Previously, Ukrainian citizens could freely purchase Bitcoin and other cryptocurrencies with the hryvnia. Now, according to statements issued by the National Bank of Ukraine, citizens are prohibited from purchasing bitcoin with the local fiat currency. The Ukrainian central bank officially announced Thursday a set of restrictions on cross-border operations, prohibiting individuals from buying cryptocurrencies like Bitcoin (BTC).

Limited Crypto Purchases with Foreign Currency

While the ban restricts hryvnia purchases, the NBU has clarified that citizens can still buy crypto using foreign currency. However, there's a monthly limit. The National Bank of Ukraine (NBU) said citizens can now only buy crypto using foreign currency up to a value of 100,000 Ukrainian hryvnia ($3,400) per month. This will help to manage capital flows while still allowing some participation in the crypto market.

In Summary

Ukraine's central bank has banned the purchase of cryptocurrency using the country's local currency, invoking martial law. This change significantly affects how Ukrainians can invest in Bitcoin and other digital assets, focusing instead on limited purchases with foreign currency to mitigate capital outflow risks.