Ukraine Bans Residents from Bitcoin Buying with Local Currency

Ukrainians who want to buy Bitcoin will need to use foreign currency — and even then, there is a monthly purchase cap of $3,300.

 

The National Bank of Ukraine (NBU) continues taking steps to prevent capital outflows during martial law by imposing major restrictions on crypto purchases.

 

The Ukrainian central bank officially announced a series of restrictions on cross-border operations on Thursday, prohibiting individuals from buying cryptocurrencies like Bitcoin (BTC) with the national fiat hryvnia (UAH).

 

Ukrainians are now allowed to buy Bitcoin and other cryptocurrencies only with foreign currency, with total monthly purchases limited to 100,000 UAH ($3,300). The relevant limit also applies to international peer-to-peer transactions.

 

According to the announcement, the NBU has deemed crypto purchases as “quasi cash transactions” alongside operations like electronic wallet deposits, foreign exchange transactions and travel payments. By adopting restrictions on such transactions, the central bank aims to prevent the “unproductive outflow of capital” from the country amid martial law.

 

“The relevant changes will help improve the foreign exchange market, which is a necessary prerequisite for easing restrictions in the future, as well as reducing pressure on Ukraine’s international reserves,” the NBU wrote.

 

The central bank admitted that the need for international transactions has massively increased amid martial law, with millions of citizens being forced to leave Ukraine. However, the NBU cannot afford “unproductive capital outflows,” which include investing in cryptocurrencies, the announcement notes, adding:

 

“Quasi cash transactions […] are mainly carried out to circumvent the current restrictions of the National Bank, in particular for investing abroad, which is prohibited under martial law. Therefore, the relevant transactions should be interpreted as leading to unproductive capital outflows.”

 

According to the NBU, the Ukrainian government adopted the relevant changes as part of the NBU board resolution on Wednesday, which was then entered into force.

 

Some Ukrainian banks have already imposed such restrictions, according to multiple sources. PrivatBank, Ukraine’s largest commercial bank, reportedly banned its customers from buying BTC with UAH in mid-March.

 

The restrictions are clearly drawing attention as the Ukrainian government has been actively working to legalize cryptocurrencies during martial law. In March, Ukrainian president Volodymyr Zelenskyy signed a law to create a legal framework for the country to operate a regulated crypto market.