Ukrainian Law May Separate Mining from Cryptocurrencies

Ukrainian legislators should separate the regulation of crypto mining from the legal status of cryptocurrencies. The new approach was proposed by the chairman of an important parliamentary committee who criticized law enforcement agencies for cracking down on crypto miners. Police confiscated mining equipment in a series of raids this week. Authorities claim that coins have been used to finance pro-Russian separatists.

Just Calculation…

Ukrainian deputy Olexandr Danchenko, head of the Committee for Informatization and Communications in the Rada, suggested that cryptocurrencies and crypto mining should be regulated separately. He condemned Ukraine’s security services for pressuring miners. “Mining is just calculation”, the MP said during a meeting with digital market experts, business executives and government officials in Kiev.

“Ukraine’s share of the global cryptocurrency mining market has shrunk to just 3%”, Danchenko noted, quoted by Interfax-Ukraine. “Separate mining from cryptocurrencies”, he appealed during the consultations. Ukraine’s Deputy Prime Minister and Minister of Economic Development Stepan Kubiv agreed that the issue could be resolved by drafting a relevant bill.

Olexandr Danchenko warned that many Ukrainian miners are leaving the country because of the crackdown by authorities. “Canada is creating optimal conditions for mining and our guys invest their money there”, he said.

Under Pressure

Raids on several mining facilities in Kiev, Kiev Oblast (the adjacent region) and Cherkasy Oblast were conducted on Thursday. 400 mining rigs have been confiscated during a search in the PJSC Kvazar plant in the capital. Police have seized more than a thousand graphics cards, 1,500 hard disks, 500 motherboards and several laptops.

According to Ukrainian authorities, proceeds from the mining operations have been used to finance separatist activities in the Eastern Ukrainian regions of Donetsk and Lugansk, Unian reported. Documents with Russian bank details found during the raids proved financial transfers to the territories controlled by the pro-Russian forces. Funds were stored in Qiwi and Yandex wallets…

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