Data from Kuna, a leading Ukraine-based crypto exchange, revealed that it is experiencing colossal transaction volumes on its platform following Russia’s attack on Ukraine. Coingecko data revealed Kuna’s trade volume has tripled within the last 24 hours and is close to $4m as of this writing.
The Impact Of War On Ukraine’s Fiat Currency
The war between Russia and Ukraine would affect the currencies of each nation. The war has negatively impacted both currencies, but the effect has been more on Ukraine’s hryvnia. It is now close to 30/USD, which would be a new low.
The eastern European nation only approved the legalization of cryptos following several months of discussion between its legislative members. The move saw massive demand for digital assets from Ukrainians. One of the noticeable effects was the huge trading volume experienced on one of Ukraine’s oldest crypto exchanges, Kuna.
Kuna’s trading volume was less than $1m four days ago but rose to more than $4m yesterday. However, Coingecko data revealed that the excitement is starting to wane as the hryvnia gradually stabilizes towards the USD and other top currencies.
Apex Bank Limits Hryvnia Withdrawals
Strangely, Kuna’s spread rates on either side of the BTC price weren’t unclear as it seems too ambiguous compared to what’s obtainable on other exchanges. As of this writing, Bitstamp data showed BTC/USD to be $38.4K, while it was $40.3K on Kuna for the same cryptocurrency pair. Curiously, the BTC/USDT rate on Kuna was stated as $37.89K.
Ukraine’s currency control ministry issued a new release regarding BTC transactions earlier in the week. First, Ukraine’s apex bank restricted cash and limited hryvnia withdrawals to 100K UAH daily. The apex bank completely prohibited international forex transactions, including withdrawals. Also, it announced the suspension of all electronic transactions with immediate effect.
Modifying Earlier Policies On Financial Transactions
A Facebook post linked with a top government official claimed that the bank is making moves to create a fixed exchange rate for the hryvnia. The apex bank further clarified that banks are the only entity still allowed to purchase foreign currencies. Thus, residents can perform local commercial transactions by selling their USD, EUR, and other foreign currencies to buy hryvnia.
However, the statement didn’t include modifications to the crypto-related transactions policy. Similarly, Russia’s apex bank has also been issuing policies to enhance the Ruble’s value, which seems to be declining every day. But, it has published more of such policies in the last 24 hours.
Many world leaders have condemned Russia’s actions against Ukraine, calling for various sanctions on Russia. For instance, Czech Republic President, Milos Zeman, called on the United Nations to disconnect Russia from the international payment system (SWIFT).
However, Zeman’s suggestions were countered by German Chancellor, Olaf Scholz, who opined that now is not the best time to remove Russia from the swift system. Russia’s attack on Ukraine has had a strong negative impact on the crypto and stock markets over the past 24 hours.