Different Ways to Cash out Crypto in Ukraine

How to Convert Crypto Into Fiat in Ukraine   

Cryptocurrencies are largely popular among Ukrainians. Speaking in numbers, one in four Ukrainians owns crypto. There are different cash out options in the country if the holders decide to convert their assets to fiat. Here, we’ll cover popular methods one by one.  

1. Cash Out Crypto Using a Bank Card

Say you have some crypto held on a crypto exchange that you want to withdraw to your bank account. Since bank cards don't directly support cryptocurrency transactions, the first step would be converting the assets into hryvnia (UAH), dollar (USD), euro (EUR), or other fiat currency. To do this, you need to have the bank card attached to your account. Then, you can use Spot or P2P (Peer-to-Peer) trading options to sell your crypto for fiat.

Spot trading is when you put in a request and the platform executes it, matching your selling request with a buying one. With P2P, you see a list of buyers, the prices they offer, and the range of assets that they are ready to buy. When you find a suitable offer, you initiate the transaction. Once the buyer receives your order, they send the requested amount to your bank address. 

Another option is to cash out crypto via online crypto exchange services focused only on buying and selling crypto. At first look, these platforms are similar to traditional crypto exchanges, but they are more direct and simple. Sometimes, they operate without KYC which allows users to withdraw the money not only to their but someone else’s bank card. 

Bank Transfers. Source: Freepik

Spot and P2P trading have their pros and cons. Spot trading is usually fast and involves fewer risks of fraud, while it typically presents higher fees. P2P requests, on the other hand, take place between buyers and sellers directly. However, they may take longer to process as you wait for the buyer’s response, which can be delayed if they are unavailable. There's also a risk of fraud, so always verify you've received payment before confirming any transaction or releasing funds. 

Both spot and P2P trading can be affected by regulations imposed by Central Banks and government agencies. Ukraine is among the countries that have been developing a framework for crypto regulations. The legislation is expected to be formed by the end of 2024 to establish rules for the market. Till then, the crypto industry is in the gray zone in Ukraine, meaning it’s neither banned nor does it have a legal framework. The National Bank of Ukraine can limit or suspend crypto trading on exchanges to decrease financial instability risks and strengthen monetary control. Limitations can impact spot and P2P differently, and sometimes spot trading can be more influenced by regulations because the platform operator handles transactions, unlike P2P trading which is  processed directly between individuals. For example, in March 2023, Ukraine’s central bank suspended the use of hryvnia on crypto exchanges after which Binance and a few other platforms halted spot trading. Meanwhile, P2P remained unaffected. The bank later eased the crypto controls. 

2. Cash Out Crypto Using a Crypto Debit Card 

WhiteBIT Card. Source: whitepay.com

Crypto cards are issued by crypto companies in partnership with global payment companies like Visa or MasterCard. The main goal of crypto cards is to make it easier to use and withdraw digital assets. These cards are especially useful for people who often use cryptocurrencies and decentralized services. They provide a convenient way to spend assets stored in crypto wallets without needing a regular bank account. Crypto cards have similar functionalities as bank cards and  can be accepted as a payment means at many online and physical stores where  major card networks are accepted. Beyond the simplified payments and cash out process, crypto cards typically offer rewards to holders, discounts on transaction fees, and other benefits. Users can make payments with crypto cards at businesses that offer crypto-compatible POS terminals or if it’s an online purchase, clicking the option “pay with crypto.” Due to software integrations and payment processing solutions, crypto is converted into fiat automatically.

Among the crypto cards available in Ukraine is the WhiteBIT Card, WhiteBIT’s digital crypto card with Apple Pay and Google Pay support. You can easily set up and use it to make payments and withdraw cash from ATMs in Ukraine and abroad. The WhiteBIT Card is a part of Whitepay, the company’s payment processing division, which offers different products and services, including a POS terminal that allows merchants to easily accept crypto payments. 

3. Cash Out Crypto Using a Crypto ATM   

Bitcoin ATM. Source: bitomat.com

According to Forbes, the first Bitcoin ATMs started to appear in Ukraine in 2014. In 2024, you can find crypto ATM terminals across various locations in Ukraine to both buy and sell crypto with cash. To do so, you need to select the option you want, open your crypto wallet app, scan the QR, and complete the steps displayed on the screen. Depending on an ATM, customer verification, like an ID scan may be required if the withdrawal amount crosses a certain limit. For example, in most cases of Bitomat ATMs, it’s €1,000. 

Which Crypto Cashout Option to Choose in Ukraine?  

Generally, all the main types of crypto cashouts are available in Ukraine. Choosing a cashout option mainly depends on how often you use crypto, what assets you need to sell and what personal preferences you have. Test out different possibilities, and compare fees, accessibility, and supported cryptocurrencies when making a choice. For example, terminals may be convenient if there’s an open terminal near you that supports the crypto you want to sell from your crypto wallet. Using an exchange and a bank card is beginner-friendly, while crypto cards are for people who use crypto more frequently. Whatever your needs are, you’ll find a suitable cash-out option for you. 

However, you don’t always need to cash out your assets to spend them as different merchants in Ukraine accept crypto payments directly from customers’ wallets. You can buy gadgets and even cars paying with crypto while the number of crypto-friendly businesses keeps rising. Just make sure that’s an option in advance. 

If you’re hesitating whether to hold or withdraw your crypto, take into account that in case of holding you don’t need to pay any tax or fees. Taxes may apply when you sell, although the percentage and conditions are still in draft form.