Besides putting restrictions on banking cards, and fiat deposits, and making withdrawals on cryptocurrency exchanges like Binance and Kuna Ukraine’s Central bank has temporarily suspended the use of its national currency – Hryvnia too. This decision of Ukraine’s Central bank immediately impacted the investors and made it difficult to move funds to and from the exchanges.
As a result, Binance immediately acknowledged the problem that investors face due to regulatory decisions and emphasized the alternative solution. Binance emphasized Peer-to-Peer (P2P) Services for trading cryptocurrencies on the crypto exchanges. It explained that P2P services would allow users to exchange crypto and fiat currency directly with the users without the need for a third party i.e. banking ecosystem.
On the other hand, the Founder of the local crypto exchange, Kuna gave regard to the news relating to the currency suspension while informing investors about the inconvenience. However, the founder Michael Chobanian is yet to explain the nuances of the development. Furthermore, he added that regulatory decisions have the least impact on the Bitcoin ecosystem.
Ukraine’s anti–crypto stance shocked the country that netted more than $70 Million in the form of crypto donations since the Russian –Ukrainian conflict has been around. The Ukrainian Government itself provided the reports from Chainanalysis, the cryptocurrencies donated to Ukraine wallets.
However, on February 24. The Ukrainian Deputy Digital Minister, Alex Bornyakov stated that had they used the traditional financial system, it would have taken them a long time to secure the purchase of essential items which became possible with crypto. Further, he stated that around 60% of their suppliers were able to expect cryptocurrency.
Thus, the temporary suspension of national currency from the crypto exchange is indeed a shock for global crypto enthusiasts.