KUNA founder: Ukraine’s central bank ‘killed’ local crypto market

As an analyst with over a decade of experience in the financial sector, I find myself deeply intrigued by Michael Chobanyan’s perspective on the state of the crypto market in Ukraine and his strategic shift towards Europe. Having witnessed the dynamic evolution of various markets across the globe, I can appreciate the challenges faced by local players like KUNA in hostile environments.


Michael Chobanyan, creator of KUNA, asserts that the actions taken by Ukraine’s central bank have essentially “eliminated” the local digital currency market, leading him to redirect his attention towards expanding in Europe.

Michael Chobanyan, founder of KUNA crypto exchange, stated in an interview with Delo.ua that the crypto market in Ukraine is more akin to being deceased rather than thriving. He attributed this state to the National Bank of Ukraine, claiming they have essentially “eliminated” the local crypto market by implementing strict policies that he believes have crippled the industry.

As a crypto investor, I’ve found the current state of the Ukrainian crypto market to be quite challenging. The harsh restrictions imposed by the national bank on crypto transactions using the hryvnia, our local currency, have played a significant role in this decline. These regulations, enacted about two years ago, have significantly reduced market activity, making transactions primarily cash-based. This shift presents numerous logistical and security challenges that I, as an investor, find challenging to navigate.

“In other words, as long as the Ukrainian economy isn’t expanding, it’s unlikely that the cryptocurrency market will bounce back.”

Michael Chobanyan, KUNA founder

In light of the unchanging situation in Ukraine, Chobanyan is choosing to direct his attention towards Europe instead. He sees the upcoming Markets in Crypto-Assets (MiCA) regulations as a potential goldmine. Chobanyan’s European project, KUNA Pay, aims to take advantage of these new rules by providing crypto payment processing and tax solutions to seize this opportunity.

As stated by Chobanyan, the KUNA Pay team is gearing up for the unveiling of the digital euro sometime between 2026 and 2028. Their aim is to build a robust network of merchants throughout the European Union during this period and extend their services to additional regions. Despite the obstacles in Ukraine, he maintains a positive outlook on the prospects for growth within Europe, where he is readying KUNA’s operations for expansion to cater to emerging market requirements.

Beginning in March 2023, Ukrainian banks have stopped handling transactions for converting cryptocurrencies into Ukrainian hryvnias and vice versa due to technical issues. Later on, local news outlets hinted that the crypto market might face stricter regulations as part of the Ukrainian government’s broader efforts to restrict the gambling industry.

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2024-08-23 14:46