Ukrainian officials suggest separate management of mining and cryptocurrency

nBankruptcy comment: The head of the Ukrainian Communications and Information Commission recently stressed at a meeting that Ukraine’s legislature should distinguish between the regulation of mining and cryptocurrencies, pointing out that the Ukraine’s crackdown on miners has already caused an outflow of personnel while others are Take various incentives to attract these miners. Such comments could make Ukraine speed up the legislative process to separate the management of cryptocurrencies and mining.n
nTranslation: Inan
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“Mining is just calculating”n
Olexandr Danchenko, head of the Ukrainian Communication and Information Commission, proposed to separate cryptocurrencies from mining. He condemned Ukraine’s sanctions against miners. Speaking to digital market experts, business executives and government officials in Kiev, he said: “Mining is just a calculation.”n
According to Ukrainian Interfax, he noted that “Ukraine’s share of the global cryptocurrency mining market has shrunk to only 3%” and in its discussions called for “to separate mining from cryptocurrencies.” Stepan Kubiv, Ukrainian Deputy Prime Minister and Minister of Economic Development, agreed to resolve the issue by drafting relevant bills.n
Olexandr Danchenko warned that the authorities’ crackdown has caused many Ukrainian miners to start traveling to other countries. He said:n
n”Canada is creating the best conditions for mining, where our miners invest.”n
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Severe pressuren
The government raided a number of mining mills in the area around Kiev, the area around Kiev and the area around Cherkasy and seized 400 mining equipment during a search of the PJSC Kvazar factory in Kiev. Police have seized more than 1,000 graphics cards, 1,500 hard drives, 500 motherboards and several laptops.n
Ukrainian authorities said these mining proceeds have been used to fund the separatist activities in the Donetsk and Lugansk regions of eastern Ukraine. Documents that they found during their searches with Russian banks proved that the funds were being transferred to areas controlled by pro-Russian forces and were stored in the Qiwi and Yandex wallets.n
Anatoliy Matios, Deputy Attorney General of Ukraine, told a news conference in Kyiv: “This currency, officially banned by Ukraine, has been used to purchase military equipment, weapons and ammunition for illegal armed groups in Donetsk and Lugansk. Investigators have identified the identities of those involved in mining. It is not yet clear why they want to build a plant in Ukraine because it is far easier to transfer funds or equipment to separatists from within Russia.n
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Manage separatelyn
If Ukraine decides to go it alone, some cryptocurrencies regulations may be adopted earlier than expected. Russia has also made similar recommendations, though agencies differ in their view of the legalization of cryptocurrencies, but most officials believe it is possible to legalize and monitor cryptocurrencies mining. Even Russia’s central bank, which opposes the legalization of cryptocurrencies, recently announced that it would allow cryptocurrencies to be mined.n
Since October last year, two bills on the regulation of cryptocurrencies and mining have been pushed through some of the Ukrainian parliamentary organizations. However, since entering 2018, there is no news of any significant progress in this work. The new bill may provide incentives for miners, including price cuts.n
While Danchenko warned the authorities to watch out for the outflow of Ukrainian miners, other governments in the region are trying to attract miners. Belarus will soon complete the legalization of the entire encryption industry, including tax exemptions for mining companies. Countries like Uzbekistan provide cheap electricity and other incentives.n

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