Ukraine Issues Cryptocurrency Ban as Bitcoin Crashes Below $40,000

• Ukraine’s central bank has stopped its citizens from buying digital assets with the local currency.

• The country’s cryptocurrency ban is aimed at preventing “unproductive capital outflows”, according to a statement released by the central bank.

• The negative news in the cryptocurrency space has caused the value of top crypto assets to crash

The National Bank of Ukraine has banned the purchase of cryptocurrency using the country’s local currency. In a statement that was released yesterday, the central bank claimed that Ukrainians may only purchase cryptocurrency using foreign currency.

Meanwhile, the statement also revealed that cryptocurrency purchases using other currencies will be limited to 100,000 hryvnia (approximately $3,400). With this ban in place, citizens will also be allowed to buy crypto assets using foreign currency accounts.

The central bank disclosed that the cryptocurrency ban is aimed at preventing “unproductive capital outflows”, while the country is under martial law.

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Despite what seems like an attack against crypto, the Ukrainian government remains crypto-friendly. The Eastern European country formally legalized Bitcoin and other cryptocurrencies last month. It also received over $100 million in crypto donations to aid its defense against Russia’s invasion.

The crypto market has not reacted well to much negative news over the past couple of days. On Friday, flagship crypto asset, Bitcoin, crashed below $40,000 losing more than 2% of its value. Ethereum also followed Bitcoin’s movement, losing more than 3% in 24 hours. At the time of this report, the global crypto market capitalization stands at $1.85 trillion.

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