Ukranian authorities not planning to regulate cryptocurrencies

June 26, 2018
Chris Wheal

Ukraine could become a haven for cryptocurrency mining after the state said on Monday it had no plans to regulate the activity, but miners stayed cautious as the regulatory framework for crypto assets remains unclear.

Cryptocurrency mining hardware: Shutterstock

Responding to an official request from the Better Regulation Delivery Office, the State Service for Special Communication and Information Protection said it did not expect to introduce measures to either licence cryptocurrency mining or regulate it as a “special type of activity”.

Profitable mining

Russian crypto-information website CryptoRussia.ru claimed that miners in Ukraine “in general” earn more than $100m a year as the “legal field of the country is still favourable for crypto-extraction”, as opposed to many countries in Europe where costs are rapidly rising due to the impact of regulations.

Yet miners in Ukraine remain circumspect, avoiding any publicity as authorities can be capricious in their attitudes to cryptocurrencies as the sector remains outside any legal or regulatory framework.

The country’s Securities and Stock Market Commission said in May it was considering its view on cryptocurrencies as a financial instrument.

Draft legislation

Meanwhile, draft legislation to legalise the cryptocurrency sector is in progress. The document, seen last month by Cointelegraph, said the legislation aimed to develop a “free and transparent” digital asset market in Ukraine, but also proposed measures to help the international fight against money laundering, terrorism financing and other related criminal activity.

The only progress so far, however, according to CryptoRussia.ru, was a statement by Alexei Mushak – a member of the legislative assembly – in May, who said that the Rada plans in the near future to legalise crypto-currencies.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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