Ukraine to Recognize Mining As Economic Activity

Ukraine to Recognize Mining As Economic Activity

As Ukrainian legislators are struggling to come up with the final version of the bill on cyber money, the country’s government decided to take the bull by the horns. Soon crypto mining might be considered in Ukraine as a type of economic activity, and, therefore, be legalized.

Ukraine Makes the First Step In Bitcoin Legalization

On March 15, the Ukrainian gov't (The Cabinet of Ministers) officially entrusted relevant authorities to classify bitcoin production as a type of economic activity and incorporate it into the National Classifier of such practices.

This is believed to be the first step on the way to bitcoin legalization in Ukraine, by the way.

Furthermore, this Eastern European country’s gov’t in an official statement has offered to create advantageous stipulations for crypto production there.

The First Vice Prime Minister of the country and, at the same time, the head of the Ukrainian Ministry of Economic Development and Trade Stepan Kubiv claimed that Ukraine is among top-14 nations for the advancement of cyber money economics and fruition of blockchain schemes.

Nevertheless, added the official, the Ukrainian legislation is not advanced; hence, Ukraine should start with adding crypto production to the classifier of economic projects.

The minister also announced that mining will be appended to the class of data processing and website placement of info. This decision was triggered by the fact that mining itself includes services, aimed at the operation of distributed data registers as well as their support. The Ukrainian gov’t, thus, means the usage:

  • blockchain
  • data processing
  • smart contracts in classified blockchain catalog

Fighting Grey Economics of Cryptos

According to the statement, the Ukrainian gov’t hopes to solve the issue of grey revenues in the realm of cyber money. The official classification, though yet without proper legislation, will make the funds flow into the budget of Ukraine (as taxes are needed to be paid for economic activities).

But more interestingly, the gov’t believes that the official recognition of mining as an economic enterprise will restrain the outflow of IT-specialists from Ukraine.