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

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Bitcoin, Ethereum, DOGE See Boost In Ukraine As President Zelenskyy Legalizes Crypto
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The Ukrainian central bank has banned citizens from purchasing bitcoin and other cryptocurrencies with the local currency while the country remains under martial law.

Ukrainians Banned From Using The Hryvnia To Buy Crypto

The National Bank of Ukraine (NBU) on Thursday unveiled a new series of restrictions on cross-border transactions in a bid to curb “unproductive capital outflows” from the war-torn nation as it continues to operate under martial law.

The central bank classifies bitcoin buys as “quasi cash transactions” along with electronic wallets deposits, creating brokerage or FX accounts, and travel payments.

As part of the new restrictions, Ukraine residents may only buy crypto using foreign currency, with the total monthly purchases capped at 100,000 Ukrainian hryvnias (or $3,400).

The NBU explained that it has taken this course of action to buoy the hryvnia’s standing in the foreign currency market as well as ease pressure on Ukraine’s reserves. Per the Thursday announcement, the country has witnessed a dramatic increase in international transactions as millions of citizens were forced to flee due to the military invasion by Russia.

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Crypto In Ukraine

Ukraine has noticeably been ahead of the curve in sovereign state cryptocurrency adoption in recent months in the thick of one of the gloomiest periods in the nation’s history.

Ukraine started accepting donations in cryptocurrencies almost immediately after its eastern European neighbor launched its unjustified attack. Over $100 million in Bitcoin, Ethereum, Solana, Polkadot, Dogecoin, and other crypto-assets poured in from people all over the world.

Just last month, Ukraine launched an NFT museum to immortalize the memories of its ongoing conflict with Russia on the Ethereum blockchain and also finance its defenses and humanitarian efforts.

A little over a week before that, President Zelenskyy passed legislation to legalize crypto and create a legal framework for adopting the asset class.

That being said, pundits are convinced that the Russia-Ukraine conflict will accelerate the adoption and use of cryptocurrencies.

Bitcoin is down 4.88% on the day, breaking below the $40k price level, currently trading at $39,623.