The recent ban by Ukraine is one of the numerous measures taken by Ukraine’s National Bank in connection to the martial law in the nation.
Russia invades Ukraine
On Thursday, February 24th, 2022, following Russia’s invasion of Ukraine by land, air, and sea, the National Bank of Ukraine released a series of decisions in connection with the country’s current martial law.
The bank enacted many laws, including the suspension of electronic money issuers, the replenishment of electronic wallets with electronic money, and the delivery of electronic money to electronic money issuing institutions.
Take note, however, that e-money in this context refers to fiat currency stored digitally, such as in a PayPal account or a cash app. As of this writing, it is unclear whether this applies to cryptocurrency or other digital currencies. Permission was granted last year for the central bank to launch a central bank digital currency (CBDC).
Additionally, the orders stop the foreign exchange market, restrict withdrawals from consumer bank accounts, and prohibit customers from withdrawing foreign currency from their accounts.
