Ukraine: propose to legalize mining and create crypto valley

Ukraine: propose to legalize mining and create crypto valley

On Monday, October 7, a meeting was held on the regulation of the crypto and blockchain industry in Ukraine. Representatives of the Ministry of Digital Transformation, the Verkhovna Rada, the Office of Effective Regulation (BRDO), as well as relevant associations and businesses participated in it.

The meeting was organized by the recently formed inter-faction parliamentary group Blockchain4Ukraine.

Among the main steps developed during the event:

  • development of terminology for further regulation of the industry. In particular, through amendments to the law “On public registries”;
  • legalization of mining;
  • attracting international cryptocurrency exchanges to Ukraine;
  • implementation of recommendations of the Financial Action Task Force (FATF);
  • implementation of blockchain in state registries.

It is planned to devote 2-3 years to study these issues.

In the near future, the Ministry of Digital Affairs plans to sign a memorandum with Blockchain4Ukraine, the Association of Blockchain of Ukraine, BRDO, and others.

It is likely that the Ministry of Figures will deal with the formation and monitoring of the implementation of the developed rules. In September, the department was instructed to pursue state policy in the field of digitalization.

Deputy Minister of Digital Transformation Alexander Bornyakov commented on the proposal to legalize mining:

The plans are to make it so that those who are engaged in mining can do this without fear that they are in some kind of gray zone.

The founder of the Kuna exchange, Mikhail Chobanyan, said at the meeting that Ukraine should implement the FATF recommendations “without options”.

Acting Director of the National Bank's Reform Strategy Department Mikhail Vidyakin noted on Facebook that the necessary legislation for regulating the crypto industry can be adopted in the shortest possible time:

We need to be courageous and adopt the necessary legislation (in accordance with the concept). The Maltese experience shows that only 6–9 months can pass between concept development and legislative changes.

Also on Monday, the BAU introduced a bill to create the “Ukrainian crypto valley”.