Monobank clarifies restrictions on withdrawing hryvnias from cryptocurrency exchanges
Ukrainian Monobank explained the restrictions on withdrawing funds from cryptocurrency exchanges.
In a ForkLog UA comment, the bank’s support service cited Section 4.3 of the Terms and Rules of Service, which provides for the suspension of incoming and outgoing transactions in foreign currency if there is suspicion of their connection with prohibited activity, including forex deals and transfers of electronic currency.
“Transfers related to electronic currencies (not only Binance) are prohibited by the bank’s rules, so such a payment cannot be credited,” said support.
To avoid trouble at the bank, customers were advised not to initiate such payments.
“The bank acts strictly within the [instructions] of the NBU and the applicable law; this is enough to make decisions,” added the support staff.
In an additional comment, monobank clarified that the ban applies only to the Binance exchange and does not affect other foreign and Ukrainian trading platforms.
“Payments from Binance are prohibited. The ban does not extend to other crypto exchanges, but any credit may be subject to scrutiny,” added the bank.
The support team could not provide a detailed explanation of such a directive:
“There is no possibility to comment. The ban is a bank decision.”
According to Binance users, P2P transactions by cards with Monobank are currently proceeding as usual.
In a ForkLog UA comment, a Binance representative reminded that at the end of April the National Bank of Ukraine, in order to reduce capital outflows from the country, restricted cryptocurrency purchases up to 100,000 hryvnias per person per month.
“Probably some banks simply lack the technical ability to monitor the limit, so they block all crypto operations, fearing to breach the restriction. This affects both direct purchases of cryptocurrency (quasi-cash) and P2P. Binance has not imposed any restrictions,” emphasized the exchange’s representative.
PrivatBank clients also reported a similar issue with direct withdrawals to hryvnia cards. ForkLog UA sent a request to the company’s press service.
As reported, since 16 March PrivatBank temporarily prohibited its clients from depositing hryvnias into cryptocurrency exchanges. According to the statement, the restriction is related to the National Bank of Ukraine’s decision and applies during martial law. The ban did not affect Ukrainian Bitcoin exchanges.
At the same time, Monobank told ForkLog UA that cross-border transfers are restricted, but within Ukraine, hryvnia operations should face “no difficulties.”
In February 2022, the Verkhovna Rada of Ukraine passed the Law on Virtual Assets, which regulates cryptocurrency turnover within the country. The document, despite the signature of President Volodymyr Zelensky, will come into force only after changes to the Tax Code are adopted.
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