As time goes on, more and more aspects of the blockchain and cryptocurrency industry are being been heavily regulated around the globe. This includes the activities of crypto exchanges, tax to be paid by crypto holders, the legal status of cryptocurrency as a whole as well as the business that surrounds it. Mining has always been an interesting sector of the cryptocurrency industry because it is the method by which cryptocurrencies are created and even in China where a crypto ban is in place, the mining community continues to thrive as there is a huge business for it.
One place that does not intend to regulate mining, however, is Ukraine as it was recently announced that crypto mining activities will not be subject to government or third-party oversight.
Information was published in the country’s virtual assets manifest on February 7, 2020. According to the Ministry of Digital Transformation of Ukraine, the crypto mining industry is already being overseen by its network members and its protocol and thus, does not need further government intervention.
The manifest went on to clarify that the government intends to contribute to the development of decentralized technologies as well as their implementation. Beyond this, sandboxes will be created for the testing of these technologies and the determination of their effects on the markets. They will also be the promotion of interaction between the traditional financial markets and the virtual assets industry as well as setting up of laws, mechanisms, and regulations such as taxation, best practices and so on in order to drive his growth.
Ukraine as a nation is doing much more to explore the cryptocurrency sector as it was announced in late January 2020 that the government would be able to track the source of funds in citizens’ crypto wallets to determine the purpose of the funds, their source and what they have been used for to prevent any misuse. It is interesting to note that the government considers crypto mining to be a self-regulatory aspect and does not intend to get involved.