The Nationwide Financial institution of Ukraine (NBU) continues taking measures to forestall capital outflows amid martial regulation by implementing main restrictions on cryptocurrency purchases.

The Ukrainian central financial institution formally announced Thursday a set of restrictions on cross-border operations, prohibiting people from shopping for cryptocurrencies like Bitcoin (BTC) with the nationwide fiat foreign money, the hryvnia (UAH).

Ukrainians at the moment are allowed to purchase Bitcoin and different cryptocurrencies solely with international foreign money, with whole month-to-month purchases restricted to 100,000 UAH ($3,300). The related restrict additionally applies to worldwide peer-to-peer transactions.

In accordance with the announcement, the NBU has deemed crypto purchases as “quasi money transactions” alongside operations like digital pockets deposits, international alternate transactions and journey funds. By adopting restrictions on such transactions, the central financial institution goals to forestall the “unproductive outflow of capital” from the nation amid martial regulation.

“The related adjustments will assist enhance the international alternate market, which is a vital prerequisite for alleviating restrictions sooner or later, in addition to decreasing strain on Ukraine’s worldwide reserves,” the NBU wrote.

The central financial institution admitted that the necessity for worldwide transactions has massively elevated amid martial regulation, with thousands and thousands of residents being compelled to depart Ukraine. Nonetheless, the NBU can’t afford “unproductive capital outflows,” which embody investing in cryptocurrencies, the announcement notes, including:

“Quasi money transactions […] are primarily carried out to avoid the present restrictions of the Nationwide Financial institution, specifically for investing overseas, which is prohibited beneath martial regulation. Due to this fact, the related transactions needs to be interpreted as resulting in unproductive capital outflows.”

In accordance with the NBU, the Ukrainian authorities adopted the related adjustments as a part of the NBU board decision on Wednesday, which was then entered into power.

Associated: Ukraine’s largest savings bank halts Bitcoin buys with hryvnia — Report

Some Ukrainian banks have adopted such restrictions already, in line with a number of sources. PrivatBank, the biggest industrial financial institution in Ukraine, reportedly prohibited its prospects from buying BTC with UAH in mid-March.

The restrictions apparently raised eyebrows because the Ukrainian authorities has been actively working to legalize cryptocurrencies amid martial regulation. In March, Ukrainian president Volodymyr Zelenskyy signed a law to ascertain a authorized framework for the nation to function a regulated crypto market.