Ukraine Privatbank Suspends Money Transfers to Crypto Exchanges

Privatbank, Ukraine’s largest commercial bank, temporarily stopped transfers of national currency to digital assets exchanges. According to the current martial law, restrictions imposed on the country’s central banks prompted the financial institution to temporarily halt transfers in national currency to digital asset exchanges.

Leading Bank of Ukraine Bans Clients from Sending Hryvnia To Crypto Trading Platforms

Privatbank, Ukraine’s biggest bank by assets, has banned its clients from transferring funds into Ukrainian hryvnia (the national fiat currency), to trade cryptocurrencies. March 16th marked the temporary suspension.

According to Forklog’s crypto news outlet, the statement cites a resolution that the National Bank of Ukraine (NBU), issued on February 24, the same day Russia launched its military invasion of Ukraine.

It does not mention crypto-related transactions but regulates the banking system in martial law. The document also introduces stricter rules to bank operations. Cash withdrawals could not exceed 100,000 hryvnia (approx. $3,400 daily and the exchange rate for hryvnia was fixed.

Privatbank stated that banks are not allowed to transact cross-border currency transfers from Ukraine for clients. Privatbank explained that it is possible to transfer funds to cryptocurrency exchanges.

Binance, the largest crypto exchange in the world by trading volume, confirmed the news that Privatbank had made a decision about hryvnia deposits. Users are warned by the company that other banks could do the same, and they are urged to use peer-to-peer trades.

To fund its defense against advancing Russian forces, and to address growing humanitarian needs, Ukraine has accepted crypto donations. Despite President Volodymyr Zileniskyy signing the new law “On Virtual Assets” this week, the ban is still in effect.