Ukraine bans pawn shops from accepting drones

3 May 2024, 09:19 PM

The National Bank of Ukraine (NBU) has prohibited pawn shops and banks from accepting UAVs and thermal imagers as collateral for individual loans, the regulator announced on May 3. 

The restrictions will take effect on May 4.

Banks and pawn shops are now prohibited from accepting as collateral items that are classified as dual-use goods (those having both civilian and military uses).

This includes drones, thermal imagers, or night vision devices.

The NBU said that the ban was introduced following the decision of Ukraine’s National Security and Defense Council (NSDC) dated April 20, aimed at combating the negative effects of online gambling. Based on the same decision, Ukrainian President Volodymyr Zelenskyy signed a decree to restrict online gambling, including for military servicemembers.

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Poorly regulated online gaming services have been growing increasingly popular in the country, particularly among those enlisted in the military. Gambling addiction often compels Ukrainian soldiers to steal valuable items from their units and pawn them for cash. Many online casinos overtly courted this demographic, using the iconography of the Armed Forces of Ukraine in their marketing.

On April 28, Ukraine blocked over 2,500 gambling websites and unlicensed online casinos.

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