You Can Now Mine Crypto in Ukraine Without a License
Have you ever been interested in cryptocurrency mining? If so, you might want to start in Ukraine, where officials are now allowing miners to operate without a license.
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The Trials and Tribulations of Mining
Crypto mining is not easy. Miners often face steep electricity bills, expensive mining hardware, and political risks posed — rightly or otherwise — by environmental activists.
Not to mention the wild crypto price swings that mean mining is never guaranteed to be profitable. Given the challenges crypto miners face, choosing a friendly jurisdiction is an important component of a successful mining enterprise.
Ukraine’s State Service of Special Communication and Information Protection has announced that cryptocurrency mining companies will not need to obtain licenses before conducting business. In addition, the country is offering very inexpensive electricity to miners of less than four cents per kWh.
Why the Sudden Shift in Attitude in Ukraine?
Prior to this rule change, cryptocurrency mining in Ukraine largely took place underground due to legislative fog and strict tax regulations. Rules involving cryptocurrency mining were confusing and unclear, and law enforcement officials have not always been kind to operations in the past, despite the overwhelming popularity of cryptocurrency in Ukraine and the country’s well-established tech space.
Now, Ukraine is slated to make more than $100 million USD in annual revenue from the combined efforts of its mining companies, vastly more than European counterparts like Germany and Italy. In addition, Ukraine is also seeing an influx of mining ventures entering the region to take advantage of the loosened regulations and affordable energy prices.
You’re Still Upset?
The shift is in response to an inquiry made just last week by the Better Regulation Delivery Office Organization (BRDO), which surprisingly, isn’t entirely content with the decisions made. While representatives of the body feel too much regulation is a bad thing, they believe Ukraine is entering a phase of “no regulation,” which, they argue, is even worse.
Furthermore, some law enforcement agencies continue to act independently of the government, and insist that cryptocurrency mining is the wrong path for Ukraine. Thus, several miners have had their equipment either stolen or destroyed, along with their digital funds.
The BRDO is now introducing three new bills that will tighten regulation in the cryptocurrency sector. The first focuses on cryptocurrency circulation within the country, the second involves stimulating the market, and the third pertains to taxation. Ukraine may be on a path toward becoming a regional cryptocurrency center.
Will Ukraine become the next big crypto haven? Post your comments below.
Images via Pixabay