Mining is not prohibited in Ukraine and does not require a license, Crypto Advisor key says
The Regulatory status of cryptocurrency mining remains somewhat unclear in Ukraine, even after the recent passage of the law “On Virtual Assets.” However, although unregulated, digital coin minting does not is also not prohibited, according to a leading crypto adviser to the Ukrainian parliament.
Amendments to Ukrainian tax law to regulate the comptability of cryptocurrency mining entities
The mining of digital currencies has remained outside the scope of new Ukrainian legislation intended to regulate transactions involving cryptocurrencies in the country. Various accounting aspects relating to crypto-related activities, including mining, will be addressed in upcoming tax code amendments, a senior adviser from the Verkhovna Rada, Ukraine's parliament, told Forklog.
Konstantin Yarmolenko, who heads a team of advisers from the multi-party group of MPs Blockchain4Ukraine, added pointed out that theCryptocurrency mining should not be licensed in accordance with recommendations issued by the Financial Action Task Force on Money Laundering ering ( FATF ). Yarmolenko is also the founder and CEO of the non-governmental organization Blockchain4ukraine .
The law on virtual assets introduced a licensing regime for service providers cryptographic in Ukraine. Cryptocurrency exchanges, for example, and other platforms operating with digital assets will need authorization from the Ukrainian Ministry of Digital Transformation in order to continue operating within the law.
In the absence of dedicated regulations, the minting of coinsdigital devices are not prohibited in Ukraine, except in cases where operators of crypto farms illegally connect their equipment to the power grid. The Security Service of Ukraine (SBU) attacked these minors and close mining facilities in different parts of the country this year.
The “On Virtual Assets” law, which the Rada adopted at second reading on Wednesday, will come into force after lawmakers introduce necessary changes to tax law. Yarmolenko revealed that the authors of the amendments plan to adopt a value added tax (VAT) rate of 0% for all transactions with virtual assets except equipment sales.s specialized and physical cryptocurrency wallets.
The crypto bill was voted on first reading at the Rada last December and revised this year before the draft is presented for final adoption. The law defines virtual assets as intangible assets and distinguishes between ed and unsecured digital assets. Cryptocurrencies belong to the second category.
Decentralized digital currencies have been denied legal tender status in Ukraine. However, the country's Deputy Digital Transformation Minister Oleksandr Bornyakov noted in a recent interview that Ukrainians will not only be able to keep and trade digital coins legally, but also spend cryptocurrencies through aInstant conversion to Ukrainian hryvnia using the services of regulated intermediaries.
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