Officially there are no legal entities operating on the cryptocurrency market in the Ukraine although in fact the country has the entire necessary infrastructure: buyers and sellers, cryptoexchanges, miners and even successful ICOs.
The State Service for Special Communications and Information Protection of the Ukraine announced that now mining (extraction of cryptocurrencies) in the country can be practiced without a license, Pravda.ru reports. According to the estimation of this department, the cryptocurrency mining is not classified as a licensed type of activity. Official explanations of the department were provided at the request of the Ukrainian organization «Better Regulation Delivery Office» (BRDO).
The representative of BRDO noted that the possible recognition of mining as a licensed type of activity and a «service in the field of cryptographic information protection» was now one of the most problematic issues of the cryptomarket. According to Forklog referring to the opinion of ITC BRDO sector expert Igor Samohodsky, «for the unlicensed activities the representatives of the market were so far threatened by a tangible sanction − a fine as well as confiscation of the equipment and the mined cryptocurrency».
It is noted that so far the businessmen and companies operating in the field of cryptocurrencies have tried to avoid the official registration of their activities. It was due to the existing uncertainty of the legal status of cryptocurrencies and transactions with them.
Mining in the Ukraine
An interest in the regulation of mining was provoked by the recent publication of the new research of the Ukrainian cryptocurrency market. It was published in late spring and it was reported by the Coinspot media. Following the results of 2017, the Ukraine entered the top-10 of the states by the use of cryptocurrencies and the amount of funds raised by ICO reached $100 million.
The research «The Green Book: Regulation of the Cryptocurrency Market» was carried out by the Ukrainian organization «Better Regulation Delivery Office » − an independent expert-analytical center established by the initiative of the Ministry of Economic Development and Trade of the Ukraine and the western partners at EU funds.
The research notes that although officially there are no legal entities operating on the cryptocurrency market in the Ukraine, the country has the entire necessary infrastructure: buyers and sellers, cryptoexchanges, miners and even the creators of the new digital currencies that could successfully conduct the ICO.
The authors of the research singled out three Ukrainian exchanges: Exmo, Kuna and BTC Trade UA. Daily on these cryptoexchanges the deals are concluded for up to $1.9 million in equivalent: on Exmo − $1 275 million, Kuna − $403 000, BTC Trade UA − $232 000. The most traded cryptocurrencies are named bitcoin and ethereum. The most expensive «Ukrainian» cryptocurrency is MinexCoin ($35 million).
As for mining, as noted in the research, currently in the Ukraine there are some companies that offer the services for the installation of mining farms «on a turn-key basis» or by leasing capacities. According to the experts, the total size of this sector can reach $100 million.
At the same time the analysts notes that in fact the market exists and is developing but de jure it does not exist because of the absence of the state regulation. The regulators have not yet reached a consolidated position with regard to the cryptomarket.
In March the Minister of Economic Development and Trade Stepan Kubiv instructed the state agencies to develop the documents necessary to supplement the Classification of Economic Activities (CEA) with the paragraph on mining.
The future of mining in the Ukraine
According to recent data, the annual income of the Ukrainian miners is more than $100 million. The Ukraine is becoming an increasingly attractive place for miners because the costs for cryptocurrency mining in many other places in Europe are growing and remain prohibitively high at the current cost of bitcoin.
According to a recent poll, the Ukrainian citizens are increasingly aware of the relevance of digital currencies − 72% of the respondents know what cryptocurrencies are and 13% of them said that they owned them.
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