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The Ukrainian government has declared that crypto-mining in the country will not be regulated. The announcement came from the State Service for Special Communication and Information Protection of Ukraine, Cointelegraph reported.
This declaration came after the Better Regulation Delivery Office (BRDO) made an official request asking about information regarding the proliferation of crypto mining activities in the country. The agency governs the economic freedom and efficient regulations in the region, which is why it wasn’t too thrilled when the announcement said the government will not mandate crypto miners to get a license for their activities.
Ukraine has attracted a lot of these miners in recent years as electricity is relatively cheap in the country, and regulations surrounding it are looser compared to other territories. Energy price in the country is less than $0.07 per kilowatt hour, allowing miners to produce Bitcoin on a $3,500 expenditure.
Compare that to countries like Germany, where miners are paying $7,964 to energy providers to mine a single Bitcoin, and one would understand why these crypto-mining companies are gravitating towards Ukraine. These mining operations are also bringing in a lot of revenue for the country, which is estimated to be around $100 million yearly, according to reports.
Moreover, cryptocurrency is becoming a household name in Ukraine as polls conducted this year saw 72 percent of respondents saying they have an inkling of what it is, while 13 percent of them admitted they own some form of it. The same report found that 41 percent of participants wanted the legalization of cryptocurrency, while 19 percent of them voted for completely banning it.
The BRDO said that it disagrees with the announcement, citing past threats and sanctions from higher authorities when proper regulations weren’t put in place. Crypto companies are also operating in a high-risk environment as uncertain responses from authorities sometimes result in the confiscation of their equipment and loss of earnings.
