Crypto Mining Does Not Need Watchdog Regulatory Activities, Says Ukrainian Authorities

News / 10.02.2020

According to authorities in Ukraine, there is no need for governmental oversight bodies or others to carry out regulatory operations for cryptocurrency mining.

Ukraine’s Ministry of Digital Transformation published a manifest on virtual assets on February 7, stating that governmental regulations are not needed for crypto mining because it is regulated by the protocol itself as well as its network members.

The ministry noted its plan to help develop and implement decentralized technologies, and likewise set up sandboxes to evaluate and verify them, as well as to assess likely risks to the market.

The agency likewise promised to enhance interactions between financial markets and virtual assets as well as their growth. It will also establish global best practices to tax virtual assets, and come up with sound mechanisms for the prevention of abuse and offense from business and law enforcement.

Recently, it seems Ukraine is seriously looking into digital currency and blockchain domain. Reports have it that the country’s minister of finance said that the State Financial Monitoring Service of Ukraine (SFMS) would be in charge of tracking where the funds on citizens’ cryptocurrency wallets come from.

Hence, the SFMS would know where the cryptocurrency comes from and likewise know the spending details.

In Dec. 2019, the government approved a money laundering law to manage virtual assets as well as virtual asset service providers based on FATF guidelines.

The law provides guidelines on how the government plans to watchdog and regulate cryptocurrency trading. Part of the guidelines is focused on individual cryptocurrency transactions not up to 30,000 hrivnia ($1,300) and the government will obtain the sender’s public key for financial monitoring.

 

Featured image courtesy of Shutterstock. Souce: Cryptopress.

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Holds a degree in BSc. Nursing from the University of Cape Coast, Ghana yet an addict to the blockchain technology and the cryptosphere. He combines the promotion of crypto projects and also the making of professional contents all to get innovative projects to the real world. He is a passionate Community manager and a Marketing Advisor for blockchain startups.