Ukraine’s central bank ‘killed’ local crypto market

Michael Chobanyan, founder of KUNA, claims Ukraine’s central bank has effectively “killed” the local cryptocurrency market, prompting him to shift his focus to Europe.

According to Michael Chobanyan, founder of the KUNA crypto exchange, the crypto market in Ukraine is dead rather than alive. In an interview with Ukrainian news media Delo.ua, Chobanyan blames the National Bank of Ukraine for effectively “killing” the local crypto market. He criticized the central bank’s restrictive policies, which he claims have devastated the industry.

The founder described the current state of the Ukrainian crypto market as devastating, attributing the decline to the national bank’s stringent restrictions on crypto transactions in hryvnias, the country’s currency. Implemented over two years ago, the regulations have significantly curtailed market activity, leaving transactions limited primarily to cash, which presents logistical and security challenges.

“Therefore, until the Ukrainian economy begins to grow, we shouldn’t expect the crypto market to recover.”

Michael Chobanyan, KUNA founder

In response to the stagnant conditions in Ukraine, Chobanyan is shifting his focus to Europe. He is targeting the upcoming Markets in Crypto-Assets (MiCA) regulations as a promising opportunity. Chobanyan’s European venture, KUNA Pay, aims to capitalize on 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 establish a substantial network of merchants across the European Union and expand their offerings into other regions. Despite the challenges in Ukraine, he remains optimistic about the potential for growth in Europe, where he is preparing to expand KUNA’s operations to meet new market demands.

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