Cryptocurrency mining is not a simple task, but it is a fundamental task. And, mining is the basic process through which the Blockchain obtains the processing power it needs to maintain itself, while issuing new cryptocurrencies. However, this is not always a simple process. Especially due to state regulations on this activity. Something that tries to avoid Ukraine by giving freedom for mining in its territory.
The allegority problem
Although we can say that cryptocurrencies in general, and their mining in particular, are a sector very badly seen by the governments of the world. The truth is that most of them have not established regulations to prevent this activity from being carried out in their territory.
On the contrary, they have preferred to make use of a resource not so direct, but equally effective, to discourage cryptocurrency mining. We refer to leaving the activities related to these in a territory of allegiance. Without prohibiting them directly using the law, but avoiding creating regulations that regulate the sector.
This is the situation of most Latin American countries. Where to open a company dedicated to cryptocurrency mining. It turns out to be a tremendously risky activity. Well, there is no state guarantee on the property and economic activities of investors. One of the fundamental pillars so that any company can be successfully carried out.
However, this creates an opportunity for those countries that take a step forward in their legislation, and regulate the crypto world. Well, for cryptocurrency companies, it will always be more attractive to settle in a country with clear rules than in one without rules. Which will allow them to attract capital, technology and knowledge to their nations.
Ukraine, a mine-friendly territory
Ukraine is part of this group of countries that are making significant efforts to attract investments to their territory in Blockchain technology. Understanding the importance of block chains for the national power of any country in the 21st century.
To that end, Ukraine has tried to update its legal framework in recent months. Making it attractive to cryptocurrency companies, compared to the various options they have in the European territory. And among those countries such as Estonia or Belarus.
Therefore, we are not surprised by the statement of the Ministry of Digital Transformation, which has reaffirmed that cryptocurrency mining is legal in Ukraine. And not only that, but it does not need any state surveillance to be carried out. Since this activity is regulated by the network users themselves, and the protocol of their Blockchain.
This would be linked to the approval of the Law against Money Laundering of Ukraine, which includes virtual assets. And other legal mechanisms to give security to crypto world investors to carry out their activities. An important advance that is probably emulated by other countries, and that makes this our Data of the Day today here in CriptoTendencia.
International Studies student, interested in economics and international politics. Passionate about the progress of the Fourth Industrial Revolution in general and cryptocurrencies in particular.