Binance, one of the world’s largest cryptocurrency exchanges, has recommended peer-to-peer (P2P) services to users in Ukraine after the country’s central bank temporarily suspended the use of its national currency, the hryvnia, for fiat deposits and withdrawals on crypto exchanges.
The central bank’s decision had an immediate impact on investors’ ability to transfer funds to and from exchanges. Although the founder of the local exchange Kuna acknowledged the service disruption, he highlighted that such regulatory actions do not affect the Bitcoin ecosystem.
Binance seized the opportunity to educate its users on P2P services, which enable direct exchange of cryptocurrency and fiat currency between users, eliminating the need for intermediaries such as banks. The exchange advised its users that they could continue to utilize Binance comfortably by leveraging these P2P services.
The temporary suspension of hryvnia use on crypto exchanges has surprised the country, which has received more than $70 million in crypto donations since the Russian-Ukrainian conflict began. Alex Bornyakov, the deputy digital minister of Ukraine, emphasized the significance of cryptocurrencies in quickly securing essential items, noting that approximately 60% of suppliers were able to accept them. The central bank’s action poses a risk of halting the entire Ukrainian crypto/card UAH market, and local exchanges are exploring ways to resolve the issue.