Ukrainians Rush to Trade Crypto Due to Currency Controls


Quick take:

  • Crypto trade volume on the Ukrainian crypto exchange of Kuna spiked by 220% on February 24th
  • The increment was the result of the Ukrainian Central bank suspending e-money transfers
  • The daily trade volume on the Kuna Exchange has since stabilized to normal levels around $1.7 million

Citizens and residents of Ukraine have turned to Bitcoin and other cryptocurrencies as a result of the country’s Central Bank suspending the use of e-money transfers.

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According to data from CoinGecko, trade volume on the Ukrainian crypto exchange of Kuna spiked by 220% on February 24th after the Central bank made the announcement.

Earlier on that day, the trade volume on Kuna stood at $1.5 million before spiking to $4.8 million by midnight as a result of the new restrictions. Trade volume on Kuna has since normalized at $1.7 million.

Ukrainians Rush to Trade Crypto Due to Currency Controls 13
Trade volume on Kuna exchange courtesy of CoinGecko

The suspension of e-money transfers was issued by the Ukrainian Central Bank to cushion the country’s currency, the Hryvnia, from the potential volatility as a result of Russia invading the country.

The Ukrainian Central bank went on to explain that the measures were also aimed at ‘[ensuring] the reliable and stable operation of Ukraine’s financial system and facilitate the fullest support for the activity of the Armed Forces of Ukraine, as well as the smooth operation of critical infrastructure’.

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Furthermore, the order to suspend e-money transfers was part of the following actions by the Ukrainian Central Bank effective 24th of February.

  • The suspension of Ukraine’s FX market, except for sales by customers
  • Fixing the official exchange rate
  • Limit cash withdrawals from accounts to UAH 100,000 per day except for businesses and institutions involved with the government or those that have special permission
  • Halt the release of cash in foreign currency except for businesses and institutions with special permission or working with the government
  • Suspend transactions from the accounts of residents from Russia
  • Suspend the issuing and distribution of electronic money by banks, as well as account top-ups with electronic money

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