Ukrainian Regulator: Crypto Mining Does Not Need Governmental Monitoring

Ukrainian regulator believes that crypto mining does not have to be overseen by government structures or other third-party authorities.

On February 7, the Ministry of Digital Transformation of Ukraine released news outlining its stance on digital assets. Ukrainian regulator stated that crypto mining does not need to be regulated by state authorities, as it is regulated by the protocol itself and network members.

The regulator’s contribution to the industry

The ministry further stated that it will assist in developing and implementing decentralized technologies, create sandboxes for their evaluation and verification, and investigation of potential risks to the market.

The ministry promised to endorse interaction between the financial market and virtual assets and their effective development, world best practices on virtual assets taxation, as well as implement effective mechanisms to avert abuse and offense from businesses and law enforcement.

Ukraine actively exploring crypto

In recent months Ukraine has been actively researching cryptocurrencies and blockchain industry. As reports have it, in late January, Ukraine’s Finance Minister said that the State Financial Monitoring Service of Ukraine (SFMS) would be the authority responsible for monitoring the origin of funds Ukrainian citizens store in their crypto wallets. Thus, the SFMS will track not only the origin of the crypto but also determine how the funds have been spent.

Last December, the Ukrainian government enacted the final version of a money laundering law which will control virtual assets and virtual asset service providers in accordance with FATF regulations.

The new law outlines how the government plans to regulate crypto trading. One of the guidelines focuses on individual cryptocurrency transactions worth less that 30,000 hryvina ($1,300). The regulators will obtain only public keys from such transactions in order to conduct financial monitoring.