Monobank Alerts Users to P2P Crypto Transaction Risks Amid Regulatory Uncertainty

Monobank's Crypto Caution: P2P Transactions Under Scrutiny

Ukrainian financial institutions, including Monobank, are reminding customers about the murky regulatory waters surrounding peer-to-peer (P2P) cryptocurrency sales. A recent notification to a Monobank client highlighted that profits derived from such transactions remain largely untaxed and legally undefined in Ukraine. This ambiguity means that frequent or large-scale P2P crypto exchanges could potentially be flagged as undeclared entrepreneurial activity.

Potential Repercussions for Crypto Enthusiasts

The consequences for engaging in what regulators might deem unregistered business operations can be significant. Banks, in compliance with broader financial oversight, reserve the right to temporarily suspend or permanently block debit cards associated with these activities. Furthermore, customers might face requests for detailed explanations regarding the origin of their funds and the specific purpose of their transfers, adding a layer of administrative burden and potential anxiety for crypto users.

No New Rules, Just Enforcement of Existing Frameworks

Contrary to what some might assume, Monobank has clarified to ITC.ua that they have not implemented any novel restrictions or introduced new internal policies. The warning is essentially a reiteration of existing regulations that apply across the Ukrainian banking sector. The core issue stems from the National Bank of Ukraine's (NBU) long-standing prohibition on purchasing quasi-cash services – a category that explicitly includes cryptocurrencies – using the national currency, the hryvnia.

Navigating the Currency and Transaction Landscape

Since April 21, 2023, a specific NBU resolution (No. 18) has dictated that quasi-cash purchases are permissible only when utilizing foreign currency accounts. This allowance is capped at the equivalent of 100,000 hryvnias per month. Crucially, these limitations and guidelines are equally applicable to P2P cryptocurrency transactions, meaning that engaging in them via hryvnia-denominated cards or exceeding the monthly foreign currency limit can trigger scrutiny.

A Broader Regulatory Context

This situation underscores a global trend where financial regulators are increasingly focusing on the cryptocurrency space. While P2P transactions offer a direct way for individuals to exchange digital assets, their decentralized nature and the lack of clear tax frameworks can present a challenge for both users and financial institutions. The NBU's stance, while perhaps inconvenient for some, reflects an effort to bring greater transparency and control to financial flows within Ukraine, particularly in an area as volatile and evolving as digital currencies.