Tech

Bitcoin: cryptocurrency exchanges increase by 200% in Ukraine after the Russian invasion

Cryptocurrency exchanges, especially Bitcoin, are on the rise in Ukraine. After the invasion of Russia and the collapse of the value of the national currency, an exchange platform recorded a 200% increase in trading volumes.

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After weeks of threats, Russia invaded Ukraine. Following Vladimir Putin’s chilling televised address, Russian troops crossed the border while many Ukrainian cities, including Kiev, were bombed. At the same time, Ukraine’s IT infrastructure has been the target of a series of cyberattacks, presumably sponsored by Moscow.

The conflict caused a sudden collapse of the financial markets in the world. The cryptocurrency sector has not escaped this earthquake. Bitcoin fell around $35,000 dragging most digital currencies down with it.

Ukrainians are turning to cryptocurrencies to escape banking restrictions

Despite the sudden collapse of the market, Ukrainians have massively turned to cryptocurrencies since Russian troops crossed the border. As can be seen on Coingecko, which presents itself as “the largest independent cryptocurrency data aggregator in the world”citizens of Ukraine increased transactions after the first strikes.

Kuna, a Ukrainian cryptocurrency exchange, registered a 200% increase in transactions on Thursday, February 24, 2022. A few hours after the Russian attack, the volume of assets traded on the platform approached $5 million. In the days preceding the attack, the trading volume fluctuated between 1 and 2 million dollars.

This enthusiasm is due to the measures taken by the central bank of Ukraine. The organization decided to limit bank withdrawals throughout the country in order to stem a possible flight of capital. Ukrainians can only withdraw the equivalent of 300 euros per day.

This renewed interest in digital currencies is also due to the collapse of the value of hryvnya, the national currency of the country. Fearing losing their savings, some investors have likely converted their holdings into crypto-assets, including US dollar-backed currencies like USDT.

Read also: Bitcoin donations for the Ukrainian army have exploded since the Russian invasion

For the record, Ukraine is one of the 5 countries where cryptocurrencies are the most used in the world. To meet the growing appetite of its citizens for Bitcoin and others, the Ukrainian government has recently legalized all cryptocurrencies. This regulatory framework considers cryptocurrencies as investment assets rather than an alternative means of payment.

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