Ukrainian Flag

Ukrainian Government to Legalize Cryptocurrency Mining as an Economic Activity

Cryptocurrencies and the economic activities that are related to them are growing all over the world, and countries are taking note of it. At the same time, there is a global intention to regulate cryptocurrencies and blockchain technology. But Ukraine is ready to legalize cryptocurrency mining as an economic activity. The Ukrainian Minister of Economy ordered ministries, agencies and the National Bank to include mining as an economic activity.

Ukraine Moves Forward in the Cryptocurrency Environment

There is not an intention to move fast and adopt new cryptocurrency legislation. The industry needs also time to settle before important measures are taken. But Stepan Kubiev, Minister of Economic Development ordered other departments to include cryptocurrency mining as an economic activity. ukraine 300x170 - Ukrainian Government to Legalize Cryptocurrency Mining as an Economic Activity

The government is trying to allow the industry to grow in a friendly regulatory framework. Hard measures are not the ones that cryptocurrencies and blockchain need. In this way, the Ukrainian government will increase the amount of revenue for its budget, once all the cryptocurrency mining activities are declared.

Mr Kubiev was quoted saying:

“By adding the crypto mining sector to the classifier, we will bring it out of the shadow economy and collect more budget revenues.”

At the same time, and according to the Minister of Economic Development, legalizing the mining industry may reduce the outflow of qualified IT professionals. Ukraine has been suffering from a population that moved abroad due to the conflict with Russia and the eastern parts of the country. There are several cryptocurrency projects that are built entirely by Ukrainians with technical knowledge and the country does not want to keep losing them.

This is not the first time that Ukraine wants to regulate cryptocurrencies and the activities related to them. But it has also been debating the possibility to issue a national digital currency.

The National Bank of Ukraine (NBU), said that it was considering introducing a digital version of the national currency, the hryvnia. The currency will not be based on blockchain technology and will not be decentralized.