Ukraine Rejects Regulation of Cryptocurrency Mining

The difficulty of transferring money in sub-Saharan Africa has made cryptocurrencies attractive for Nigerians despite the volatility of bitcoin
AFP/Justin TALLIS

Ukraine announced its decision this week to neither regulate cryptocurrency mining nor tax profits from this endeavor, cementing its status as one of the most crypto-friendly countries in the world.

Officials from the State Service for Special Communications and Information Protection of Ukraine stated that the department has no interest in issuing licenses for cryptocurrency mining, to the relief of crypto miners who have been operating in secret, for fear of repercussions.

Ukraine, which reportedly “has gone above and beyond to ensure transparency” regarding cryptocurrency regulation status, has decided to allow the free market to run its course, which has already proven very lucrative for the Eastern European nation.

Live Bitcoin News hailed this decision as a positive step that will help propel the industry forward.

Cryptocurrencies are online deposits of secured wealth that act as mediums of exchange in lieu of cash or a physical bank. One unit of the largest cryptocurrency, Bitcoin, is worth more than $6,000 today and is prone to very high fluctuation. Many investors now trade Bitcoin as an alternative to buying and selling stocks.

A study by Reuters classified Ukraine as a “Global Advocate” of cryptocurrency, the highest of a five-tier ranking. Cryptocurrency mining, which involves technicians validating transactions, has generated an excess of $100 million annually for the Ukrainian economy.

The country has been so crypto-friendly, in fact, that it is even erecting a statue in honor of Satoshi Nakamoto, the unknown person or persons who invented and deployed bitcoin. The plans for the monument were announced in mid-June, and the statue is slated to be placed where Lenin’s once stood.

The Ukrainian National Securities and Stock Market Commission announced in May that it will consider recognizing cryptocurrency as a financial instrument. Ukrainians are already ahead of the cryptocurrency game, as 72 percent of Internet-using respondents said they are familiar with Bitcoin, compared to just 56 percent of respondents in a similar American poll.

Although some far-left governments, such as China and Iceland, have banned cryptocurrency, many have embraced it. Bitcoin’s popularity has been so international that Japan has even passed a law accepting it as legal tender.

With a current market capitalization of $105 billion, Bitcoin promises to prove an asset to investors for years to come. Ukraine’s decision to open its market to competition places it in an ideal position to help the nation’s technology sector continue growing.

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