Crypto Mining Does Not Require Governmental Oversight, Ukrainian Regulator Says

Published at: Feb. 10, 2020

Ukrainian authorities said that crypto mining does not require regulatory activity from governmental oversight bodies or other third-party regulations.

In its manifest on virtual assets published on Feb. 7, the Ministry of Digital Transformation of Ukraine stated that mining does not require regulation by state authorities as this activity is regulated by the protocol itself and network members.

The regulator’s contribution to the industry

The agency further outlined that it will contribute to the development and implementation of decentralized technologies, as well as establish sandboxes for their evaluation and verification, and assessment of potential risks to the market.

The agency pledged to promote interaction between the financial market and virtual assets and their effective development, international best practices on taxation of virtual assets, as well as establish effective mechanisms to prevent abuse and offense from business and law enforcement.

Ukraine’s active exploration of cryptocurrencies

Ukraine has appeared to be actively exploring the digital currency and blockchain space, in recent months. At the end of January, Ukraine’s Finance Minister reportedly said that the State Financial Monitoring Service of Ukraine (SFMS) would be the authority responsible for tracking the sources of origin of the funds on citizens’ crypto wallets. Thus, the SFMS would be able to not only find out the origin of crypto but also detect how those funds have been spent.

Last December, the Ukranian government approved the final version of a money laundering law that will handle virtual assets and virtual asset service providers per FATF guidelines. 

The new law includes some guidelines on how the government intends to monitor and regulate the trading of cryptocurrencies. One of the guidelines focuses on individual crypto transactions worth less than 30,000 hrivnia ($1,300), from which the government will only collect the public key of the sender for the purpose of financial monitoring.

Tags
Regulation
Cryptocurrencies
Government
Mining
Europe
Ukraine
Related Posts
Ukraine joins the comity of crypto-friendly nations with new regulation
The legal status of cryptocurrencies remains a mixed bag of regulatory positions, depending on the jurisdiction being considered. While some countries move toward blanket prohibitions or stringent regulations, others elect to go with a more open approach to crypto. For Ukraine, the latter path appears to be the case, with the government encouraging legalized crypto operations within the country. Ukraine’s seemingly positive stance on cryptocurrencies also stands in stark contrast with neighboring Russia where officials are enacting regulatory roadblocks against the ownership and use of digital currencies. While Ukraine enacts laws to recognize and regulate crypto, the country’s central bank …
Adoption / Sept. 24, 2021
Ukraine is prepared to lead Eastern Europe’s crypto space
Ukraine is ranked as the world’s leader in the Global Crypto Adoption Index 2020, according to a research published by Chainalysis earlier this fall. Despite this, cryptocurrencies still remain a gray area in the economy. Since 2014, Ukrainian authorities have been trying to implement crypto legislation that would transform the country into a competitive jurisdiction for running crypto-related businesses, but the efforts did not yield any results. Finally, just a few months ago, the Ukranian government presented a new bill on digital assets to legitimize the sector — and this time, the attempt may well be successful. The fintech strategy …
Adoption / Nov. 15, 2020
Iranian trade ministry issues 30 crypto mining licenses
Iran’s Ministry of Industries, Mining and Trade issued operating licenses for 30 crypto mining centers in the country, the country's Financial Tribue reported last Wednesday. Citing data from the ministry’s website, the report says that Iran’s Semnan Province received the most licenses, with six crypto mining farms now authorized to operate in the region. Alborz Province secured four such licenses, followed by Mazandaran, East Azarbaijan and Zanjan Provinces. Tehran Province, which houses the country’s capital, reportedly received only one license to operate a crypto mining center. The ministry also issued 2,579 establishment permits for new industrial crypto mining units across …
Bitcoin / June 28, 2021
European Parliament will hold vote on crypto bill without PoW provision
The parliament of the European Union has scheduled a vote on a framework aimed at regulating cryptocurrencies after addressing concerns over proof-of-work mining. In a Monday Twitter thread, European Parliament economics committee member Stefan Berger said the committee will vote on the Markets in Crypto Assets, or MiCA, framework on March 14 following the submission of a final draft of the bill. As the rapporteur — the person appointed to report on proceedings related to the bill — Berger said the legislation will no longer include text which some interpreted as a possible ban on proof-of-work crypto mining. “With MiCA, …
Regulation / March 7, 2022
War had no impact on Ukraine’s regulatory approach to crypto, Kyiv lawmaker says
A year after Russia’s invasion, Ukraine continues working on cryptocurrency legislation, but the war has not changed its regulatory stance, according to a Kyiv official. Ukraine has continued to follow in the footsteps of the European Union in regard to adopting digital asset laws, Ukraine’s securities commissioner Yurii Boiko told Cointelegraph in an interview. Boiko said that the Ukrainian lawmakers have been working to implement major European crypto regulations, known as the Markets in Crypto Assets regulation, or MiCA. “The approach to the regulation of the virtual asset market has not changed during the war,” Boiko stated, adding: “We clearly …
Adoption / Feb. 28, 2023