Ukraine Can Legalize Cryptocurrency Mining


Published on 15 Mar. 2018
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The minister of Economic Development and Trade Stepan Kubiv wrote on his Facebook page that the government committee had supported the decision to complement the Ukrainian Industry Classification System (KVED) by the issue about the cryptocurrency mining.

In KVED, mining will be classified as the activity on the supporting of the functioning of the distributed database, ensuring its integrity, immutability, and consistency by fulfilling calculating operations with computers. The minister mentioned:

Ukraine has a confident position in the global cyberspace; it’s in the list of top-14 countries on crypto economics development and implementation of blockchain projects. But our legislation is not so progressive. We can start at least from the adding “mining” to the KVED, and bring it out of the shadow where it remains at the moment.

According to Stepan Kubiv, the initiative was supported by the Ukrainian prime-minister Volodymyr Groisman and the number of deputies and officials.

The official website of the Ministry of Economic Development and Trade states that the complementation of the paragraph about the activity on mining for supporting the functioning of the distributed database to the KVED has to be placed in the class 63.11: “processing of data, distribution of information on web-nodes, and connected activity.” Mining presupposes services on supporting and ensuring the functioning of the distributed data registers, i.e., with the use of the blockchain technology, processing data and smart contracts in the distributed blockchain registers.

Commenting on the importance of such decision, Stepan Kubiv said:

By this complement to the KVED, we will solve the problem of “de-shadowing” of the mining market, attract additional funds to the budget, reduce the outflow of the qualified IT specialists, and weaken the pressure on the crypto community.

Stepan Kubiv has instructed the Ministry of Economic Development, Ministry of Finance, Ministry of Justice, Ministry of Energy, together with the State Statistics Service of Ukraine, Agency of Electronic Government, NBU (by agreement), NSSMC (by agreement), SSU (by agreement) to work out a corresponding project of the legal act on the addition to the Industry Classification System “KVED.” 
 
At the moment, Ukraine has no regulation on mining and cryptocurrencies. Several projects were presented last year in Verkhovna Rada, but neither was supported. However, the representatives of the regulatory bodies have recently suggested working out a new law project that should take into account previous remarks.

 


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