Cryptocurrency mining has always been a controversial topic. In many countries, it is still legal yet far too expensive to be profitable. The government is taking a rather intriguing stance in this regard. In fact, the current plan is to legalize cryptocurrency mining as an economic activity. A very surprising turn of events, to say the very least.
Ukraine has always shown an appetite for cryptocurrency and its underlying technology. Unlike some other countries, Ukraine has no intention of banning any of these novel concepts. Instead, the local government wants to foster innovation in every way possible Their decision to legalize cryptocurrency mining as an economic activity, on the other hand, does raise a lot of eyebrows. In doing so, the region becomes the first country to take this particular approach.
It seems this plan is on the table and expected to become law pretty soon, Ukraine’s Minister of Economy wants to have the necessary documents prepared as soon as possible. If this effectively becomes low, cryptocurrency mining will be included in the state register of economic activities. This will be a big step forward for the cryptocurrency industry as a whole. Some positive news is more than welcome as of right now.
There is a good reason why this positive approach is being taken right now. The Ukrainian government wants to bring cryptocurrency mining out of the shadow economy. Additionally, it seeks to collect more “budget revenues”, which may hint at potential taxation guidelines. That would not be a bad development by any means. Any economic activity in the country is taxed, and cryptocurrency mining needs no preferential treatment in this regard.
Whether or not this will effectively become the new norm in Ukraine, remains to be seen. While this initiative needs to be applauded, there is still a lot of work to be done. The local Economic Ministry is poised to legalize cryptocurrency and all of its aspects sooner rather than later. The choice to legalize Bitcoin and altcoins is the most preferred outcome for all parties involved. So far, Japan is the only major country to effectively legalize this new form of money.