No License Required for Mining Cryptocurrency in Ukraine
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No License Required for Mining Cryptocurrency in Ukraine

The Ukrainian state agency that oversees activities requiring licensing has announced that crypto mining companies do not need to obtain a license to mine cryptocurrencies.

According to the recently published report by the BRDO, the Ukrainian crypto mining industry generates revenue of more than $100 million annually. Ukraine remains attractive to crypto miners because of relatively low mining costs.

The state agency is not going to introduce such an obligation for crypto mining companies in near future as well, it said in its response to an inquiry filed by the BRDO (Better Regulation Delivery Office) organization.

However, according to the organization, failing to recognize crypto mining as an economic activity that requires licensing and a service designed to provide “cryptographic security” is one of the major issues with the local mining industry. Igod Samodhodsky, an expert at the Better Regulation Delivery Office, said that market participants have been threatened by multiple sanctions – levying fines and confiscation of mining equipment and cryptocurrencies.

He also noted that entrepreneurs and companies in the sector usually try to avoid any official registration because of uncertainty related to the legal status of crypto assets and crypto transactions. Samodhodsky emphasized that the authorities and their unpredictable actions create a number of obstacles to their operations.

In March, the national government supported an initiative to add crypto mining to the list of economic activities by the Economy Ministry. Several agencies and ministries, as well as the National Bank, are busy preparing the necessary documents. No deadline has been given to complete the procedure, so far.

And although the country is offering decent conditions to miners, including low electricity costs and no strict regulations, mining bitcoin is far from profitable in many other European nations. According to a report, mining a bitcoin in Germany and Italy costs between $7,965 to $7,745, which is way more than the current value of the cryptocurrency.

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