Binance has announced that it has halted crypto trades carried out using local bank cards in Ukraine. According to a statement from Binance and some other local exchanges in the country, the hryvnia bank cards have been having problems for a while now. One such reason is the limitation on transactions that have been imposed on the cards by the premier bank in the country.
Binance wants users to use P2P on its platform
According to a statement by the exchange, it has instructed traders to make use of its marketplace to deposit and withdraw funds without any limit. The exchange also clarified that it has closed down every channel for fiat deposits onto its platform among other things like making transactions using bank cards. According to a CEO of an exchange in Ukraine, there are still looking into some concepts to bring out solutions.
The present rumor in the country is that all cards would be banned from being able to carry out crypto payment activities and transactions. A recent publication noted that the country is using this measure to combat several issues related to money laundering using various online platforms. The statement echoed the words of a top official who mentioned that criminals have been able to carry out transactions worth $1.5 billion using these sites.
The central bank of Ukraine announces transaction limits
The issue with the use of the native currency of Ukraine on crypto websites has been occurring since September 2022. The central bank in the country also worsened the issue by placing a limit on the number of funds that can be sent to a crypto platform. An analyst mentioned that the premier bank stopped intermediaries from helping traders carry out their deposit and withdrawal transactions. Since that period, things have taken a nosedive.
The analyst believes that this suspension will take Ukraine more steps back than it took forward to be one of the leaders in terms of crypto adoption. Asides from traders using crypto, the analyst believes that it might harm companies making use of the digital asset for transactions. A recent study in Ukraine showed that the country has recouped more than $200 million in financial aid. More than $70 million of the figure was also sent to a wallet sanctioned by the government. In April 2022, the bank of Ukraine issued a statement saying that the limit on crypto payments has been pegged at $3,400 per user.