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Ministry of Digital Transformation of Ukraine: «mining does not need to be regulated»

Feb 17, 2020 | News
Ministry of Digital Transformation of Ukraine: «mining does not need to be regulated»

On February 7, 2020, the Ministry of Digital Transformation of Ukraine published a manifesto describing the main direction of the country's development in the context of the world of cryptocurrencies and is the “official” government opinion on this issue.

In short, the government believes that it is not necessary to regulate blockchains, but it is necessary to organize the normal interaction of the cryptocurrency market and the traditional financial market. Plus, establish the legal regulation of such relationships.

It was stated that due to decentralization, cryptographic methods, consensus algorithms, and social agreement, the blockchain system is able to regulate its work independently. It does not need state supervision. However, it was mainly about the Bitcoin blockchain and mining directly related to it. Other consensus algorithms have not yet been discussed.

In addition, it was argued that regardless of the degree of adjustment possible, the ministry will evaluate all such technological innovations for risk and effectiveness in the framework of specially created «sandboxes». Which is not so difficult, considering the open-source code of most such projects.

The general tactics of the activities of the Ministry of Digital Transformation of Ukraine aimed for more active implementation of any innovations related to digital technologies in general and finance in particular. Plus, the intensive involvement of government resources in the areas of crypto assets, blockchain, artificial intelligence and other modern technologies.

In general, the tactics are quite logical - as for most developed European countries. But within Ukraine, it is somewhat ambiguous. Anyway, if the use of cryptocurrencies in our country becomes more legal and reliable (and there is a chance - in September 2019, it was already proposed to officially legalize cryptocurrencies), ordinary users will have a huge number of new opportunities.