Cryptocurrency exchange Binance is recommending the use of peer-to-peer (P2P) services following restrictions imposed by the National Bank of Ukraine (NBU).
Ukraine temporarily suspended hryvnia, its national currency, via banking cards for fiat deposits and withdrawals on crypto exchanges.
Binance recommends using P2P services
Binance and the leading Ukrainian exchange, Kuna, announced temporary suspensions of operations with bank cards in Ukrainian hryvnia. Both platforms reported problems with such transactions.
Binance advised traders to use its P2P marketplace instead in a notice on Telegram on March 2.
“Currently, fiat channels, namely input and withdrawal through a bank card and other payment services, are temporarily suspended among cryptocurrency exchanges throughout Ukraine.”
Users can directly exchange crypto and fiat with other Binance users on Binance P2P without needing a middle person like banks.
Kuna founder Michael Chobanian also took to his Telegram channel to inform users that their input and output services with the hryvnia card have been suspended.
“In brief, we are looking for ways out of the situation, under the threat of stopping the entire Ukrainian crypto/card UAH market.”
Michael Chobanian, Kuna founder
Chobanian said on Friday that the challenges with non-cash hryvnia transactions could be related to efforts undertaken by Ukrainian authorities against money laundering and tax evasion through online gambling sites.
Ukraine’s restrictions might affect crypto donations
Ukraine’s anti-crypto decision comes as a shock considering the country has received over $70m in crypto donations since the start of the Russian-Ukrainian war.
Difficulties in depositing and withdrawing hryvnia on crypto exchanges started in September 2022. In December 2022, the central bank of Ukraine introduced more restrictions on cryptocurrencies.
According to Chobanian, the restrictions damage Ukraine’s reputation as a leader in crypto adoption in the region. Moreover, he believes this suspension will affect cryptocurrency donations to the war-torn country.