Ukraine Government Restricts Crypto Purchases Using Local Currency

Ukraine’s Central Bank, the National Bank of Ukraine (NBU), announced last Friday that it has restricted crypto purchases using the country’s local currency as part of efforts to prevent capital outflows amid martial law.

Ukraine’s President Volodymyr Zelenskyy declared martial law in Ukraine on February 24, when Russia launched its war on Ukraine.

Last Friday, The Ukrainian Central Bank announced a series of restrictions on cross-border “quasi-cash transactions” (such as those involving cryptocurrency) using its national fiat currency. As a result, the new restrictions local citizens from buying crypto coins with the national fiat currency, the hryvnia (UAH).

As per NBU’s announcement, Ukrainians may now buy quasi-cash assets — digital assets, traveller’s checks, and forex accounts — up to a limit of 100,000 UAH ($3,400) per month only with foreign currencies. 

Ukraine’s Central Bank has considered crypto purchases as “quasi cash transactions” together with operations such as travel payments, electronic wallet deposits, and foreign exchange transactions. The Central Bank has adopted restrictions on such transactions to prevent the “unproductive outflow of capital” from the nation amid martial law.

According to the NBU, “The relevant changes will help improve the foreign exchange market, which is a prerequisite for easing future restrictions, as well as reducing pressure on Ukraine’s international reserves.”

The Ukrainian Central Bank acknowledged that the demand for international transactions has significantly increased amid martial law, as millions of citizens are being forced to leave Ukraine.

However, the Central Bank admitted that it cannot afford “unproductive capital outflows,” which include investing in crypto. The regulator further added: “Quasi cash transactions […] are mainly carried out to circumvent the current restrictions of the National Bank, in particular for investing abroad, which is prohibited under martial law. Therefore, the relevant transactions should be interpreted as leading to unproductive capital outflows.”

However, such quasi-cash transactions are “temporarily” prohibited, the Central Bank explained.

Crypto’s Role in The War

Ever since the start of the war in late February, crypto assets have been helping to raise millions of dollars for Ukraine’s government as it fights off the Russian invasion.

The use of crypto was part of Ukraine’s strategy right from the beginning when government officials used Twitter accounts to share details of crypto wallets, where donations could be made.

By just four days after the invasion, Ukraine had managed to raise $10.2 million. And the success story continued. So far, the Ukrainian government has raised more than $100 million through crypto donations. Cryptocurrency has proven to be an effective and fast approach for the Ukrainians to get immediate funding for supplies.

At the height of the war, Ukraine passed legislation to develop a legal framework for crypto, allowing cryptocurrency exchanges to operate in the nation and banks to open accounts for crypto companies. The government also plans to amend tax and civil codes to incorporate digital assets. This marks a significant step forward for digital assets regarding how they are viewed in Ukraine and across the globe.


Image source: Shutterstock


Tagged : / / / / /

Nimbus Platform Utility Token, NBU, To List on Uniswap on Feb 24, Opportunity for Value-Seeking Investors?

The NBU utility token, native to the Nimbus Platform, is listing on the Uniswap DEX on Feb 24, 2021, at 12 PM GMT. 

Uniswap is the Centerpiece of DeFi

Uniswap is the world’s largest Ethereum-based decentralized exchange, processing over $100 billion in trading volumes.

With the growth of DeFi and increasing push to shift from traditional finance systems to decentralized options offering end users more latitude, the Nimbus Platform is positioned to provide suitable alternatives to DeFi value seekers. 

Presently, decentralized finance, or DeFi, manages over $40 billion of locked assets, and Uniswap is one of the largest. 

According to Defi Pulse, a site that tracks the number of digital assets locked in different open finance protocols, Uniswap locks over $4.1 billion of value. 

What is the Nimbus Platform?

Nimbus is a full-scale DAO-governed ecosystem that will eventually feature four high-performance DeFi dApps. These will blend the best parts of the burgeoning open finance ecosystem and exciting aspects of traditional finance. 

Users will access over ten incentivized strategy pools from one platform powered by the NBU token, opening new lucrative positions for users.

For instance, they would participate in activities like startup financing and Initial Public Offering (IPOs) via the IPO Hub.

Benefits of NBU Launching on Uniswap 

Before this listing, the token has been distributed at Nimbus Internal Swap with outstanding results from their over 50,000 trading app users. 

Data from the Nimbus Analytics platform reveals that total liquidity stood at over $3.4 million on Feb 22, with NBU trading at $1.25.

Value Distribution and Reinforcing the Sense of Community

Nimbus is designed for synergy where platform activities directly benefit NBU token holders. This is because NBU is a utility token, acting as a key to all platform’s solutions. Therefore, users who acquire NBU via Uniswap would do so cheaply while helping the ecosystem develop.

The Uniswap protocol is designed so that projects, like the Nimbus Platform, can distribute their tokens through a model to users without relying on third parties. 

Accordingly, on Feb 24, users would acquire NBU tokens without submitting their personal information or unnecessarily divulging other details. 

Exploit Arbitrage and make Money

The listing of the NBU token is also the beginning of an exciting journey for DeFi users. 

The NBU token, considering what it serves, would eventually list at more decentralized and centralized exchanges. With this, there will be an opportunity for market-making users to exploit and profit from arbitrage opportunities should they arise, therefore balancing the system.

Early adopters who get in ahead of the crowd are in a prime position to clip changes in Arbitrage, making decent returns. 

NBU Prices Will Rise with Increasing Adoption

Outside of arbitrage exploitation, it is expected that more users will trial the platform while concurrently earning more returns from capital gains. 

If anything, the external listing of the NBU token is timely for the project considering the current bull run. Understandably, users who missed out on other projects whose valuations have more than quadrupled don’t want to make the same mistake by missing out on Nimbus.

Specifically, for NBU holders, there will be more upcoming exciting launches and events directly beneficial to the Nimbus Platform ecosystem in weeks ahead.

Overly, this helps attract value, therefore driving adoption. Altogether, this solidifies Nimbus Platform’s goals of providing more earning revenues for users. 

Acquire NBU Tokens Cheaply

For users wishing to place large orders, they won’t have to worry. Uniswap’s liquidity is relatively larger than those of periphery centralized exchanges and even that of Nimbus’ Internal Swap machine. 

Accordingly, liquidity won’t be a challenge, a boost for enthusiastic fans keen on acquiring NBU tokens.

Admittedly, the Internal Swap machine charges a higher commission. However, the sole for this is to create a virtuous cycle. Fees are plowed back to liquidity providers who stake after purchasing tokens from the internal swap machine, token holders referral programs, and more. 

The reason for this symbiotic, beneficial cycle is to solely improve user experience and to provide more than one revenue stream for users.

Earn More from Liquidity Provision and LP Staking

Notably, the Nimbus Platform’s liquidity pools and LP staking are the real gems of the protocol. They are both accessible only for holders of the NBU tokens. 

Liquidity provision keeps the Nimbus ecosystem reliably running. Users who provide liquidity to Nimbus’ pools receive a portion of trading fees charged on swappers. 

As of writing, liquidity is improving, with trading volumes recently rising above $250k. On the other hand, staking liquidity on the LP staking can result in up-to 100 percent APY. 

Like BTCMANAGER? Send us a tip!

Our Bitcoin Address: 3AbQrAyRsdM5NX5BQh8qWYePEpGjCYLCy4


Tagged : / / / / / / /
Bitcoin (BTC) $ 38,922.43 0.32%
Ethereum (ETH) $ 2,150.39 2.69%
Litecoin (LTC) $ 71.91 0.26%
Bitcoin Cash (BCH) $ 226.63 0.77%