Ministry of Digital Transformation of Ukraine: “mining does not need to be regulated”

The Ministry of Digital Transformation of Ukraine published a manifesto on cryptoassets, in which it outlinedyour position. Mining, according to the government, should not be regulated.

Government Agency of Ukraine,responsible for implementing policies in the field of electronic governance and the use of national electronic information resources, published a manifesto in which it voiced its position regarding the regulation of open blockchains and mining of crypto assets.

The ministry concluded that the protocolBitcoin and coercive consensus rules are enough to regulate the blockchain, as the rules of the network are respected by the protocol itself, the operators of the nodes and the social consensus of the users themselves. Bitcoin does not need government oversight or regulatory intervention.

The manifesto states that blockchain technology isself-regulating, thanks to the use of open source protocols and an open access network that ensures privacy and free movement of assets through decentralization, cryptography, PoW and social consensus.

The regulatory policy of Ukraine is aimed atto increase government participation in developments in the field of crypto assets, blockchain and tokenization, artificial intelligence and other technological innovations. Among other things, the manifesto outlines the government’s position regarding cryptocurrency mining. The document states:

“We are committed to working inthe field of cryptocurrency mining, which is the main component of open decentralized networks. Mining does not require regulatory activities by state supervisory authorities or other third-party rules. This activity is regulated by the protocol itself and network participants. ”

The Ministry of Digital Transformation of Ukraine alsoaims to support any innovation using digital technology, even if it is only partially regulated or not regulated at all. In addition, the ministry plans to create sandboxes for assessing and implementing such technologies and managing the risks associated with them.

In the manifesto, the ministry also took overthe obligation to establish the legal regulation of relations arising in the crypto-asset market, as well as to facilitate the interaction of the financial market and the cryptocurrency market and their effective development.

Let us recall that in September last year, the Minister of Digital Transformation of Ukraine proposed to legalize cryptocurrencies.

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