BTC Plunges Below $40k As Ukraine Prohibits The Purchase Of Bitcoin Using Local Currency

While the country is under martial law, the Ukrainian central bank has prohibited individuals from acquiring bitcoin and other cryptocurrencies with local currency.

Ukrainians Banned From Using The Hryvnia To Buy Crypto

The National Bank of Ukraine (NBU) announced a new set of cross-border transaction limitations on Thursday in an effort to stem "unproductive money withdrawals" from the war-torn country, which is still under martial control.

Bitcoin purchases, along with electronic wallet deposits, opening brokerage or FX accounts, and trip payments, are classified as "quasi cash transactions" by the central bank.

Residents of Ukraine can only buy cryptocurrency in foreign currency, and their total monthly purchases are limited to 100,000 Ukrainian hryvnias (about $3,400).

The NBU indicated that it took this step to strengthen the hryvnia's position in the foreign exchange market and relieve pressure on Ukraine's reserves. According to the revelation made on Thursday, the country has seen a significant surge in foreign transactions as a result of millions of inhabitants being forced to escape owing to Russia's military invasion.

Crypto In Ukraine

In recent months, Ukraine has been considerably ahead of the curve in sovereign state cryptocurrency adoption, despite the country being in the midst of one of its darkest moments in history.

Ukraine began taking cryptocurrency donations nearly as soon as its eastern European neighbor launched its unjustified war. People from all across the world sent almost $100 million in Bitcoin, Ethereum, Solana, Polkadot, Dogecoin, and other crypto-assets.

Ukraine just built an NFT museum on the Ethereum blockchain to immortalize the memory of its continuing battle with Russia while simultaneously funding its military and humanitarian activities.

President Zelenskyy had just passed laws to legitimize cryptocurrency and create a legal foundation for its adoption a little over a week prior.

However, many believe that the crisis between Russia and Ukraine would hasten the adoption and use of cryptocurrencies.

Bitcoin is currently trading at $39,623, down 4.88 percent on the day and below the $40k price mark.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

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BTC Plunges Below $40k As Ukraine Prohibits The Purchase Of Bitcoin Using Local Currency

Prabhjeet Bhatla

Prabhjeet Bhatla is a cryptocurrency writer covering startups and a researcher since 2020. She has authored many articles for Entrepreneur India and APAC (digital and print) on cryptocurrency and ever-evolving Blockchain, the technology behind Bitcoin, and other cryptocurrencies. She specializes in applied cryptography, privacy-enhanced information storage systems, anonymous cryptocurrencies, elliptic curve crypto-systems, and satellite television piracy.