Ukrainian central bank suspends electronic cash transfers, BTC donations increase

Ukraine The central bank is cracking down on digital money transfers in one of the latest measures implemented under a nationwide declaration of martial law.

Kuna, a popular Ukrainian crypto exchange, shows that Ukrainian buyers are paying a premium for Tether’s stablecoin USDT, which is pegged to the price of the US dollar.

According to CNBC, Ukraine’s central bank is cracking down on digital money transfers in one of the latest measures implemented under a nationwide declaration of martial law.

The National Bank of Ukraine ordered e-money issuers to suspend the issuance of e-money and the replenishment of e-wallets with e-money. The written order also stated that the distribution of electronic money was temporarily prohibited.

The reference to e-money likely refers to fiat currencies held in digital accounts through platforms like Venmo or PayPal.

It is one of many new rules put in place by the country’s central bank as Russian forces besiege Ukraine.

In a statement, the National Bank of Ukraine issued a series of resolutions, including an order suspending the foreign exchange market, limiting cash withdrawals and prohibiting the issuance of foreign currency from bank accounts. Retail.

Meanwhile, Bitcoin donations to Ukraine’s military are skyrocketing after Moscow launched a full-scale offensive against Ukraine early Thursday.

New data from blockchain analytics firm Elliptic shows that over a 12-hour window on Thursday, almost $400,000 in bitcoin was donated to Come Back Alive, a Ukrainian non-governmental organization providing support to the armed forces.

The new round of crypto donations capitalizes on a trend seen in recent weeks, in which donations totaling hundreds of thousands of dollars have flowed to Ukrainian NGOs and volunteer groups working to stave off a Russian offensive, according to Elliptic.

Activists have deployed the crypto for a variety of purposes, including equipping Ukraine’s military with military equipment, medical supplies and drones, as well as funding the development of a facial recognition app designed to identify if someone is a Russian mercenary or spy.

“Cryptocurrency is increasingly being used to finance war, with the tacit approval of governments,” said Tom Robinson, chief scientist at Elliptic, which sells blockchain analytics tools to banks and to cryptocurrency platforms.

Volunteer groups have long augmented the work of the Ukrainian army by providing additional resources and manpower. When pro-Russian Ukrainian President Viktor Yanukovych was ousted in 2014, for example, volunteers stepped up to support protesters.

According to Elliptic, volunteer groups and NGOs have collectively raised more than $1 million in cryptocurrency, though that number appears to be growing rapidly as donations arrive amid Russia’s new offensive.

Prior to the Russian attack, Ukraine planned to open up the cryptocurrency market to businesses and investors, according to the Kyiv Post. Senior state officials have also touted their credibility with Silicon Valley investors and venture capital funds, but the Russian invasion has distracted from those efforts.

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