Ukraine’s central bank ‘killed’ local crypto market

KUNA founder Michael Chobanyan claims that the National Bank of Ukraine has practically “killed” the local cryptocurrency market and is therefore shifting its focus to Europe.

According to Michael Chobanyan, founder of crypto exchange KUNA, the crypto market in Ukraine is more dead than alive. In an interview with Ukrainian news outlet Delo.ua, Chobanyan accuses the National Bank of Ukraine of effectively “killing” the local crypto market. He criticizes the central bank’s restrictive policies, claiming they are ruining the industry.

The founder described the current state of the Ukrainian crypto market as devastating, attributing the decline to the national bank’s strict restrictions on crypto transactions in the country’s currency, the hryvnia. The regulations, implemented two years ago, have significantly restricted market activity and have resulted in transactions being limited primarily to cash, creating logistical and security challenges.

“Therefore, we should not wait for the cryptocurrency market to recover until the Ukrainian economy starts growing.”

Michael Chobanyan, founder of KUNA

In response to stagnant conditions in Ukraine, Chobanyan is shifting its focus to Europe. It targets Markets in Crypto Assets (MiCA) regulations as a promising opportunity. Chobanyan’s European venture, KUNA Pay, aims to take advantage of these new regulations by offering crypto payment processing and tax solutions.

According to Chobanyan, the KUNA Pay team is preparing for the launch of the digital euro between 2026 and 2028. By then, the team plans to build a significant merchant network across the European Union and expand its offerings to other regions. Despite the challenges in Ukraine, he remains optimistic about the growth potential in Europe, where KUNA is preparing to expand its operations to meet new market demands.

Since March 2023, Ukrainian banks have stopped processing requests to convert crypto to Ukrainian hryvnia and vice versa, citing technical difficulties. Later, local news reports suggested that the crypto market could face crackdowns related to the Ukrainian government’s broader campaign against the gambling industry.