Ukraine has moved to affirm its status as a cryptocurrency hub by scrapping all licenses required to mine virtual currencies. Companies planning to mine digital currencies will not have to apply for any licenses, states the agency responsible for permits.

Cryptocurrencies Mining Licenses

The State Services of Special Communication and Information Protection says it is not planning to introduce any obligation that will require people to apply for licenses. However, the agency is yet to recognize cryptocurrency mining as an economic activity or as a service for providing ‘cryptographic protection of information.’

The scrapping of the licenses is part of an effort that seeks to attract more firms into the country as mining activities at the moment account for more than $100 million. The country is positioning itself to be a cryptocurrency hub even as other countries around the world continue to institute measure designed to cripple the space.

The European nation is offering miners decent conditions as it looks to spur mining operations. Some of the incentives include low electricity rates of as low as $0.04 per KwH. In contrast, miners in Germany have to contend with electricity rates of as high as $0.17 per KwH.

Cryptocurrency Legislations

Despite the ban on licenses targeting cryptocurrencies mining activities, Ukraine still does not have a well spelled out regulation framework governing the industry. Three draft laws have so far been drafted, but deputies are yet to make significant progress on their adoption.

The bill under discussion includes one covering on the circulation of cryptocurrencies in the country, one that will seek to stimulate the market of cryptocurrencies and their derivatives. There is also a bill that will cover the taxation of income generated from cryptocurrencies related activities.

The government has already shown its receptiveness towards cryptocurrencies having supported an initiative by the Economy Ministry to add mining to the national register of economic activity in March.

Several ministries, as well as the National bank, are currently engaged in the preparation of the necessary documents. However, there is no timeline for the completion of the procedure whose outcome could pave the way for the legalization of cryptocurrencies in the country.