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Ukraine Authorities Won’t Regulate Cryptocurrency Mining

Reportedly, the Ukraine’s State Service for Special Communication and Information Protection has stated that it is not planning to regulate cryptocurrency mining.

According to the news portal, the regulatory authorities of Ukraine said that they have no plans to introduce licenses for crypto mining as a special kind of activity.

However, the news was in response to an official request for information by the Better Regulation Delivery Office (BRDO). The BRDO is an organization that promotes efficient regulations and economic freedom in Ukraine.

Noticeably, the crypto miners in Ukraine earn more than $100 million a year, although legal field of the country is still favorable for crypto-extraction. However, several countries including Europe had opposed where it is unprofitable due to rapidly growing costs for mining.

An employee of the Office of Effective Regulation, Igor Samohodsky, explained that,

“The miners are still trying to avoid publicity because of the uncertainty of the status of the crypto currency and the unpredictable reaction of the authorities”.

Moreover, mining in Ukraine is still a crucial risk because crypt related companies face major penalties and also having their equipment seized. In addition, the study suggested following criteria in Ukriane:

Around 73 percent of Ukrainians know what about cryptocurrency via internet.

  • Among that,  13 percent own some form of cryptocurrency.
  • 19 percent thought it should be banned completely
  • 41 percent said that authority should legalize the crypto.

The study suggested that around 72 percent of Ukrainians are aware about cryptocurrency through internet. And, 31 percent of respondents has digital  whereas around 19 percent opined that it be banned completely and 41 percent asked authorities should consider legalizing cryptocurrencies.

Previously, the Ukraine was involved in the process to draft legislation to legalize cryptocurrencies. However, the authorities of the country say that legislation would develop a crystal clear digital market in Ukraine. Further, the white paper guides with the rules for storing, using, crypto trading and smart contracts. In addition, it also intends regulatory measures to put off using crypto assets for terrorist financing, money laundering and illegal activities.

Earlier this year, Ukraine cyber police says that  they support the idea of legalizing cryptocurrencies. Cyber Police Department head Serhiy Demediuk said in a Facebook post that the department also supports the mining of cryptocurrencies.

He said,

“Today, there is a need to resolve at the legislative level. The issues related to the use of the cryptocurrency as soon as possible. Also the introduction of the necessary taxation of transactions on the purchase and sale of the cryptocurrency”.

Moreover, National Bank of Ukraine is continuing with a research project on possibility of introducing a national cryptocurrency.  

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Qadir AK

Qadir Ak - Co-founder of Coinpedia Blog - His interest as crypto Author, Editor, Speaker at cryptocurrency conference has made him known as passionate blogger and startup in Asia.

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