The government in Kiev has taken concrete steps to legalize cryptocurrency mining. Ukraine’s Minister of Economy has ordered several ministries, agencies, and the National Bank to prepare the documents necessary to include mining in the state register of economic activities.
Ukraine’s legislature does not seem to be in a hurry to adopt new crypto legislation, but the executive power in Kiev has taken matters into its own hands. At a meeting on Thursday, the Minister of Economic Development Stepan Kubiev ordered several other departments and agencies to do what’s necessary to include cryptocurrency mining in the state classifier of economic activities.
The ministries of economy, finance, justice, energy, the agency responsible for the e-government and the Ukrainian statistical service should prepare a draft document to amend the register. The National Bank of Ukraine (NBU) and the Security Service (SBU) have also been invited to participate. Kubiev was quoted in a press release as saying:
By adding the crypto mining sector to the classifier, we will bring it out of the shadow economy and collect more budget revenues.
The Minister of Economic Development pointed out that the legalizing of the mining industry may reduce the outflow of qualified IT professionals from Ukraine. Stepan Kubiev believes the measure will also ease the pressure on the crypto community in the country.
The initiative of the Economic Ministry is by far not the first attempt to legalize a crypto-related activity in the country. Cryptocurrencies were discussed during a cybersecurity meeting in January. The National Security Council set up a working group tasked to finalize regulations pertaining to the circulation of digital coins and the taxation of crypto transactions.
Ukraine’s Cyberpolice unit has also called on government institutions to either legalize cryptocurrencies, or ban them. The country’s justice minister Pavel Petrenko has stated that cryptos, like bitcoin, should be brought into the legal field. The State Financial Monitoring Service has already announced its official position on cryptocurrency matters.
Ukraine’s parliament, however, has not made any significant progress towards adopting the necessary legal framework. Three drafts have been introduced in the Verkhovna Rada since October. The first bill defines cryptocurrency as property that can be exchanged for goods and services. The second draft law states that cryptos are financial assets. A third, supplementary bill amends the tax code to introduce tax exemptions for profits and incomes from crypto trading and mining. Some reports in February suggested that Ukrainian legislators may separate crypto mining and cryptocurrencies in the new legislation.
According to the latest information on the website of Ukraine’s legislature, Finance Minister Olexandr Danilyuk was expected to discuss the bills on the circulation and stimulation of cryptocurrencies with members of the Finance and Banking Committee. The announcement of the hearing was published on February 7, however, no details were released after that.
Do you think legalizing crypto mining before cryptocurrencies are regulated is a good idea? Share your thoughts in the comments section below.
Images courtesy of Shutterstock.
Written by Lubomir Tassev