Home News Ukrainian largest savings bank halts Bitcoin buys with hryvnia

Ukrainian largest savings bank halts Bitcoin buys with hryvnia

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While the Ukrainian government is moving to legalise Bitcoin (BTC) in the face of continued Russian military attacks, several of the country’s top banks are reportedly prohibiting their customers from purchasing BTC with the national currency.

According to industry newsletter Forklog, PrivatBank, Ukraine’s largest commercial bank, has temporarily barred its customers from acquiring Bitcoin using the country’s currency, the hryvnia (UAH).

Additionally, as mentioned in the report, the latest PrivatBank limits are in line with an order from the National Bank of Ukraine, according to a representative for the bank. According to reports, the limitations would be in effect until the country is under martial law.

Binance’s Ukrainian division reported on PrivatBank’s cryptocurrency restrictions on Wednesday, prompting the announcement.

“We would like to inform you that beginning March 2022, PrivatBank will not enable operations with UAH on any crypto exchanges. With no exceptions,” Binance Ukraine wrote on Facebook.

Binance also encouraged its users to use its peer-to-peer (P2P) exchange service, warning that other institutions could follow suit at any time.

On the other hand, there are claims that PrivatBank has barred its customers from purchasing cryptocurrency. However, some large Ukrainian crypto exchanges appear to still accept UAH for Bitcoin purchases. As of Friday, both crypto purchases and withdrawals with hryvnias via the Kuna exchange were working properly, according to Michael Chobanian, the founder of the Kuna exchange.

“Everything works as it should,” Chobanian said. “Nothing has been obstructed,” he added.

Granting credit holidays and limiting withdrawal restrictions

PrivatBank has taken a number of actions to maintain financial stability during martial law. Including granting credit holidays and limiting withdrawal restrictions, according to the bank’s official website.

The initial accusations of PrivatBank’s crypto-related restrictions came in late February. With some users alleging that banks were restricting user accounts linked to peer-to-peer crypto exchanges like LocalBitcoins.

Ukraine finds unlikely ally in efforts to bar Russian access to crypto: The Central Bank of Russia

In like manner, President Volodymyr Zelenskyy of Ukraine signed a measure on Wednesday. That establishes a legal framework for the country to operate a regulated cryptocurrency market. In mid-February, the Ukrainian parliament passed the law in its second reading. Indicating that the Ukrainian administration was working hard to adopt rules.

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