Crypto mining requires no government supervision, says the Ukrainian supervisor

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Ukrainian authorities said that crypto-mining does not require regulatory activities of government agencies or other third-party regulations.

In his manifesto on virtual assets published on February. 7, the Ministry of Digital Transformation of Ukraine stated that mining does not require regulation by government agencies, because this activity is regulated by the protocol itself and network members.

The agency further outlined that it will contribute to the development and implementation of decentralized technologies, as well as set up sandboxes for their evaluation and verification, and assessment of potential market risks.

The agency promised to promote interaction between the financial market and virtual assets and their effective development, international best practices for taxing virtual assets, and to establish effective mechanisms to prevent abuse and violations of companies and law enforcement agencies.

Ukraine seems to be actively exploring the space for digital currency and blockchain in recent months. At the end of January, the Ukrainian Finance Minister reportedly said that the State Financial Monitoring Service of Ukraine (SFMS) would be the authority responsible for tracking the sources of origin of the funds on citizens’ crypto portfolios. The SFMS would therefore not only be able to trace the origin of crypto, but also detect how those funds were spent.

Last December, the Ukrainian government approved the final version of a money laundering law that will treat virtual assets and service providers of virtual assets according to FATF guidelines.

The new law contains a number of guidelines on how the government plans to monitor and regulate the trade in cryptocurrencies. One of the guidelines on the individual tailored crypto transactions worth less than 30,000 hrivnia ($ 1,300), from which the government only collects the public key from the sender for the purpose of financial supervision.

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Notes: 0Audience: 3154Registration: 11-07-2018

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