PrivatBank comments on card blocks over cryptocurrency transactions

Ukrainian users complained about PrivatBank and Monobank card blocks after buying and selling cryptocurrencies. One complaint appeared on the local site «Минфин».

In the complaint, a PrivatBank client said that he carried out numerous P2P exchange transactions on the Bybit exchange, after which the bank refused to continue servicing him and offered to return the funds.

Representatives of the financial institution, in their reply to the user, explained that this was in accordance with anti-money-laundering requirements.

«The bank is obliged to ensure the identification of financial transactions subject to financial monitoring, before and during their execution», said in the statement.

Separately, in a comment to the publication Incrypted, PrivatBank’s support described the information about card blocks circulating online as ‘fake’. They also clarified that ‘no new financial-monitoring rules are being applied to clients’.

«If operations and card turnover exceed the information the client previously provided, the bank may request transaction data», added by the support.

Monobank customers faced similar problems, with ‘large inflows in the last seven days’.

The bank’s support told journalists that the reasons for the card blocks could vary, with ‘withdrawal of funds from cryptocurrencies’ not being prohibited.

ForkLog requested additional comments from the financial institutions’ press offices.

In March 2023, Ukrainian cryptocurrency exchanges reported a temporary suspension of operations through hryvnia bank cards. Later it turned out that this was related to anti-money-laundering and tax-evasion in the gambling sector.

Back in March 16, 2022, PrivatBank temporarily prohibited its clients from funding hryvnias to cryptocurrency exchanges. The restriction is tied to the National Bank’s decision and applies during the period of martial law.

Around the same time, Monobank told ForkLog UA that cross-border transfers were restricted, but within Ukraine, with hryvnia operations, there should be no difficulties.

Later the bank explained withdrawal restrictions on hryvnia from Bitcoin exchanges.

In late April the NBU, aiming to curb capital outflow, restricted purchases of cryptocurrencies up to 100,000 hryvnias per person per month.