While the Ukrainian government has taken steps to legalize bitcoin (BTC) in the midst of constant attacks from the Russian military, some of the largest local banks have reportedly banned their customers from buying BTC with the national currency.

Industry publication Forklog reported on Thursday that PrivatBank, Ukraine’s largest commercial bank, has temporarily banned its customers from buying bitcoin in its national currency, the hryvnia (UAH).

The report, citing a PrivatBank representative, notes that PrivatBank’s recent restrictions are in line with the order of the National Bank of Ukraine. It is reported that the restrictions will be in place during the current period of martial law in the country.

The announcement came shortly after the Ukrainian branch of Binance on Wednesday announced restrictions on Privatbank’s cryptocurrency.

“We would like to inform you that from March 2022, PrivatBank will not support hryvnia transactions on any and all cryptocurrency exchanges,” Binance Ukraine said in a Facebook post.

Binance has also advised its customers to use a peer-to-peer (P2P) exchange service, noting that other banks may make a similar decision at any time.

According to the official website of the bank, PrivatBank has taken a number of steps to maintain financial stability in accordance with military law, providing credit holidays and increasing withdrawal limits. PrivatBank did not respond to Cointelegraph’s request for comment.

The first reports of cryptocurrency-related restrictions appeared in PrivatBank at the end of February, when some users stated that banks were blocking user accounts associated with P2P crypto exchanges such as LocalBitcoins.

RELATED: Ukraine Finds Unexpected Ally in Trying to Block Russia’s Access to Cryptocurrency: Russia’s Central Bank

On Wednesday, Ukrainian President Volodymyr Zelensky signed a law establishing the country’s legal framework for the operation of a regulated crypto market. The Ukrainian government actively worked on the adoption of the resolution, and in mid-February the Verkhovna Rada adopted the law in the second reading.

Source: CoinTelegraph

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