Wed, 28 May 2025 22:00:08 +0000

Crypto alert: Ukraine's crypto card market is rapidly contracting as Weld Money, a fintech company enabling crypto spending via Mastercard-linked cards, announces its closure in the country. Users are urged to withdraw their funds by the end of June to avoid losing access. This exit is attributed to stringent military controls under martial law and ambiguous regulatory frameworks, according to the company's social media statements. Weld Money, which began as a super-app for bank accounts five years ago, partnered with Unex Bank in 2022 to launch a card connected to WhiteBIT and Huobi (now HTX) wallets, allowing payments in USDT, USDC, BUSD, or DAI at Mastercard-accepting merchants.

Impact on the Crypto Market

Weld Money's departure signals a broader trend of crypto firms retreating Ukraine. This exodus is primarily driven by regulatory uncertainties and operational challenges posed by the current environment. The impact on the crypto market includes:

• Reduced accessibility for Ukrainian users to spend cryptocurrency.
• Increased hesitancy for international crypto companies to invest in Ukraine.
• Erosion of trust in the Ukrainian crypto market due to regulatory instability.
• Potential decline in the overall trading volume of cryptocurrencies within Ukraine.
• Further setbacks for Ukraine's ambition to become a regional blockchain hub.

Future Outlook

The future of the crypto market in Ukraine hinges on the government's ability to establish clear and supportive regulations. While the passage of the "On Virtual Assets" bill could offer some relief, the overall outlook remains uncertain. Key expectations include:

• Continued pressure on local crypto firms until regulatory clarity is achieved.
• Potential for larger, internationally-backed companies to eventually enter the market if regulations become favorable.
• Risk of further delays in the adoption of cryptocurrencies as a mainstream payment method in Ukraine.
• Possible revisions to proposed tax laws on crypto income to attract investment.
• Dependence on geopolitical stability for long-term growth and stability of the Ukrainian crypto market.

The flight of crypto firms, exemplified by Weld Money's exit, underscores the urgent need for regulatory reform to foster a stable and attractive environment for the crypto industry in Ukraine. Without clear regulations and improved operational conditions, the future of the **crypto** market in Ukraine remains uncertain.