No Licensing Required For Crypto Mining In Ukraine, Suggests Advisor


Even after the recent adoption of the law on “virtual assets”, the regulatory status of cryptocurrency mining in Ukraine has still been undetermined. However, a leading adviser on crypto affairs in the Ukrainian parliament said that the mining of digital coins was not banned.

Digital currency mining is considered to be outside the scope of Ukraine’s newly adopted law intended to regulate transactions involving cryptocurrencies in the country. Verkhovna Rada, the chief adviser to the Ukrainian parliament, told Forklog that various accounting aspects of crypto-related activities, including mining, will be amended to the tax code in the coming future.

Konstantin Yarmolenko, who heads the advisory board of the Blockchain4Ukraine Deputy Group and also said that mining of cryptocurrencies should not be licensed following the recommendations of the Financial Action Task Force of Money Laundering (FATF).

The recent Virtual Asset Law subsequently introduced a licensing system for crypto service providers in Ukraine. For example, cryptocurrency exchanges and other platforms that operate with digital assets require the approval of the Ukrainian Ministry of Digital Transformation.

While in the absence of dedicated restrictions, the minting of digital currencies is not prohibited in Ukraine, except in cases where crypto farm operators have illegally connected their equipment hardware to the power grid. The Security Service of Ukraine (SBU) has been following such miners and has closed mining facilities in various parts of the country this year.

The crypto bill was voted on first reading in the RADA last December and was renewed earlier this year than the draft put forward to finalize the adoption. Control defines digital objects as invisible objects and distinguishes between safe and insecure digital objects. Cryptocurrencies fall into the second category.

Although the decentralized digital currencies are still legal in Ukraine. However, Deputy Minister of Digital Transformation Oleksandr Bornyakov in an interview said that soon not only  Ukrainians can legally own and trade digital currency but also convert cryptocurrencies using regulated providers to use cryptocurrencies instantly.

Read Also: Trippy Bunny Donates 100% of NFTs to Suicide Prevention Foundation via The Giving Block Donations

Leave A Reply

Your email address will not be published.