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Ukraine Plans to Legalize Cryptocurrency Mining

Ukraine Cryptocurrency

Ukraine is taking steps to legalize crypto mining activities, local media sources have reported. The country’s Minister of Economy has reportedly ordered the National Bank, various agencies, and ministries to prepare all the necessary documents to include cryptocurrency mining the national register of recognized economic activities.

However, sources say that the legislature is not in any hurry to adopt any new cryptocurrency legislation, but the country’s executive power in the capital, Kiev, is taking crypto matters very seriously. At a meeting held on Thursday, Stephen Kubiev, the Minister of Economic Development, ordered various agencies and government departments to do all that is necessary to include crypto mining as an economic activity in the state classifier.

Sources privy to issues discussed in the Thursday meeting say that the ministries of finance, energy, economy, justice, the Ukrainian Statistical Service, and the agency that is responsible for e-government were required to start preparing a draft document for amendment of the register. The NBU (National Bank of Ukraine) and the SBU, Ukraine’s Security service, were also invited to participate.

In a press release, Kubiev said that “by adding the cryptocurrency mining sector into the state classifier, the government will be bringing it out from the shadow economy resulting in more budget revenues.” The minister also noted that making crypto mining legit may decrease the outflow of Ukraine’s IT professionals from the country. He believes that this move will ease the rising pressure on the cryptocurrency community in Ukraine.

The Rada in no hurry to adopt crypto legislation

This initiative by the Ministry of Economic Development is among many attempts made to legalize cryptocurrency-related activities in the country. In a cyber-security meeting held in January, Cryptocurrencies were discussed at length. The NSC (National Security Council) set up a task force to finalize regulations regarding the circulation of cryptocurrencies and means of taxing crypto transactions.

The country’s Cyber-police has also, on various occasions, called upon the relevant government authorities to either ban cryptocurrencies or legalize them. Pavel Petrenko, the Justice Minister, recently pointed out that relevant authorities should bring cryptocurrencies in the legal field. The Financial Monitoring Service has also announced its formal standpoint regarding cryptos.

Ukraine’s National Assembly, however, is yet to take any significant steps towards the adoption of a necessary legal framework. Since October 2017, 3 drafts have been tabled in the Verkhovna Rada, the National Assembly. The first draft defined cryptocurrency as property which people can exchange for products and services. The second one describes cryptocurrency as financial assets while the third one seeks to amend that tax code and initiate tax exemptions for incomes and profits gained from crypto mining and trading. In February some sources suggested that legislators were considering separating cryptocurrencies and crypto mining in the new bill.

Latest information on the Verkhovna Rada’s website reveals that the Minister of Finance, Olexandr Danilyuk would discuss the new legislation on cryptos with the members of the Banking Committee. An announcement of this hearing was published February 7th, 2018, but no further details were released on the matter.

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