Regulation of cryptocurrencies around the world has been a contentious issue, to say the least. Early adopters such as Japan and South Korea have been quite eager to see digital currencies take off. However, concerns over continuous hacking and unwise investment of FIAT money into digital assets, with little sustainability in sight, has been quite disconcerting.
However, one country is trying to buck the trend. Ukraine has long now flirted with cryptocurrency. In fact, the country had been able to establish some of the most significant mining operations, mostly because of the overall lax approach authorities have taken towards mining.
The Land of the Lawless Mining
It’s true. Ukraine hasn’t been regulating its mining operations. In the latest hour, we have found out that the State Service for Special Communication and Information Protection of Ukraine has come up with a final decision not to foist any sort of regulation on cryptocurrencies for the time being.
A regulatory agency dedicated to boosting economic prosperity, the Better Regulation Delivery Office’s (BRDO), has responded to an official request, stating that people who want to venture into crypto mining would not need a special license to do so.
Despite the relative mildness with which Ukraine treats its crypto operations, one thing is still very much disconcerting – companies continue to run a significant risk of incurring the government’s wrath and having their mining gear confiscated.
All of this leads to a huddle of miners who avoid publicity, as confirmed by BRDO official Igor Samokhodski.
Cryptocurrencies Take Off
According to a poll gauging the attitude towards cryptocurrencies in Ukraine, 72 per cent of respondents who use the internet have some basic understanding of what cryptocurrencies are. Meanwhile, 13 per cent actually own some form of cryptocurrency. More interestingly still is almost the dominant sentiment in favor of legalization of cryptocurrencies. Around 41 per cent have said that legalization of cryptocurrencies is the logical course of action that authorities should pursue.
The announcement that we read today is not in fact news. It’s more like olds. Just last month, the Ukranian National Securities and Stock Market Commission (SSMCS) head Timur Khromaev took to Facebook to announce a draft proposal for the legalization of all cryptocurrencies and initial coin offerings (ICOs) in Ukraine.
The push towards legislation of cryptocurrencies in Ukraine is not a chance occurrence. Ukraine wants to put the dodgy operations behind its back and give all companies dabbling in cryptocurrencies the full rein to scale their operations in a sustainable manner while guaranteeing ROI.
Moreover, if cryptocurrencies step into the light, this will allow the country to better gauge the size of the industry. Ukraine is also no stranger to cryptocurrencies with the country being one of the early adopters of digital money.
We recently reported about a small Ukrainian village whose residents have all become crypto owners. It has been the unlikeliest of crypto operations, but one that has taken off nevertheless.
And so, as Ukraine pushes towards an official adoption of cryptocurrencies, we should all ask ourselves if the country may one day replicate a successful digital economy model on a national scale.