Monobank, following PrivatBank, has started blocking accounts of clients trading cryptocurrency

The freezing of accounts due to cryptocurrency transactions is increasingly being practiced by Ukrainian banks. Recently, there have been reports of account freezes by PrivatBank, and now financial websites indicate that monobank has also begun denying service to clients involved in cryptocurrency trading.

“Just yesterday, my card was blocked, they asked for documents confirming income. I’m involved in peer-to-peer transfers on Binance. Initially, they said that screenshots and statements from Binance weren’t acceptable, so I provided them with OK-7 and OK-5 certificates. After that, they asked for screenshots from Binance. When I mentioned I wanted to close my account and withdraw my funds, they said I needed to wait for a 60-day verification process. I don’t understand what could take 60 days to verify. Essentially, they are unlawfully withholding 38,434 hryvnias (around 978 euros) of my personal funds,” said Mikhail Ushkalov in his complaint.

Binance is one of the world’s largest cryptocurrency exchanges in terms of Bitcoin and altcoin trading volume, registered in 15 countries worldwide. OK-5 and OK-7 certificates are issued by the Ukrainian Pension Fund for insured Ukrainians (whose data are in the State Register of Compulsory State Social Insurance), displaying citizens’ official incomes and paid social contributions.

Explaining the account block of Mikhail, monobank referred to financial monitoring and the specific law №361-IX.

In seeking a preliminary consultation (asking about the possibility of purchasing cryptocurrency from an account), journalists reached out to monobank’s support service. Manager Julia assured that monobank monitors all client payments, including those involving cryptocurrencies. In case of suspicions, they contact clients and request documents and information about financial transactions.

However, this contradicts the statements of clients who report sudden account closures without any prior warning.

It’s worth noting that cryptocurrency has not been legalized in Ukraine yet. On February 17, 2022, the Verkhovna Rada of Ukraine passed the “On Virtual Assets” law, signed by Zelensky in March. However, it is not currently in effect: the adopted document states that it will take effect after changes are made to the Tax Code of Ukraine.