Crypto News – Ukraine’s Crypto Market ‘Dead’ Says KUNA Founder as He Shifts Focus to Europe
Crypto News – Michael Chobanyan, the founder of the KUNA cryptocurrency exchange, has harshly criticized Ukraine’s central bank, accusing it of effectively “killing” the local crypto market. In a recent interview with Ukrainian news outlet Delo.ua, Chobanyan outlined the severe impact of the National Bank of Ukraine’s restrictive policies on the country’s cryptocurrency industry.
Impact of Restrictive Policies on Ukraine’s Crypto Market
Chobanyan described the current state of the Ukrainian crypto market as “devastating,” attributing its decline to stringent restrictions imposed by the National Bank of Ukraine on crypto transactions in the national currency, hryvnia. These regulations, implemented over two years ago, have dramatically restricted market activity. As a result, crypto transactions are now primarily limited to cash, which poses significant logistical and security challenges.
Chobanyan’s remarks reflect the broader frustration within the industry, highlighting how regulatory constraints have stifled growth and innovation in Ukraine’s crypto sector. He warned that recovery of the market is unlikely until the Ukrainian economy shows signs of growth.
Shifting Focus to Europe
In response to the stagnation in Ukraine, Chobanyan is redirecting his focus to Europe. He is optimistic about the upcoming Markets in Crypto-Assets (MiCA) regulations, viewing them as a valuable opportunity. Chobanyan’s European initiative, KUNA Pay, is set to benefit from these new regulations by providing crypto payment processing and tax solutions.
The KUNA Pay team is also preparing for the launch of the digital euro, projected to debut between 2026 and 2028. Chobanyan plans to build a robust network of merchants across the European Union and expand operations into additional regions. Despite the current difficulties in Ukraine, Chobanyan remains confident in the potential for growth in Europe, where he anticipates a positive shift in market dynamics.
Banking Challenges and Market Crackdowns
Since March 2023, Ukrainian banks have halted processing requests to convert cryptocurrency to hryvnias and vice versa, citing technical difficulties. Local news reports have suggested that this may be part of a broader crackdown related to the Ukrainian government’s campaign against the gambling industry. This ongoing uncertainty continues to impact the crypto market, further complicating recovery efforts.
Chobanyan’s move to Europe underscores a strategic pivot as he seeks to capitalize on more favorable regulatory environments and market conditions outside Ukraine.
FAQ on Michael Chobanyan’s Criticism of Ukraine’s Crypto Market
Who is Michael Chobanyan and what role does he play in the cryptocurrency industry?
Michael Chobanyan is the founder of KUNA, a cryptocurrency exchange based in Ukraine. He is a prominent figure in the crypto industry and has been vocal about the challenges facing the local market due to regulatory issues.
What recent claim did Michael Chobanyan make about Ukraine’s crypto market?
Michael Chobanyan claimed that the central bank of Ukraine has effectively “killed” the local cryptocurrency market through its restrictive policies. He believes these regulations have severely hindered market activity and growth.
What specific actions by Ukraine’s central bank are criticized by Chobanyan?
Chobanyan criticized the central bank’s stringent restrictions on crypto transactions in hryvnias, Ukraine’s national currency. These restrictions, implemented over two years ago, have led to a decline in market activity and limited transactions mainly to cash.
How has the crypto market in Ukraine been affected by these restrictions?
The restrictions have drastically reduced market activity, leaving many crypto transactions confined to cash, which presents logistical and security challenges. This has contributed to what Chobanyan describes as a “devastating” situation for the Ukrainian crypto market.
What is Michael Chobanyan’s plan following the challenges in Ukraine?
Chobanyan is shifting his focus to Europe, where he sees opportunities in the upcoming Markets in Crypto-Assets (MiCA) regulations. His European venture, KUNA Pay, aims to leverage these new regulations by offering crypto payment processing and tax solutions.
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