The yearly crypto mining turnover in Ukraine exceeds $100 million.
Ukrainian crypto businesses have created 25 digital coins in 2017 and 2018, raising more than $132 million through token sales, according to a new report.
Cryptocurrencies are gaining popularity in the country, where the daily trading volume now reaches $1.9 million. The growing number of crypto users served by local exchanges has prompted calls for clear but light regulations, according to Bitcoin.com.
Over the past year and a half, Ukraine-based companies have attracted more than $132 million through Initial Coin Offerings (ICOs), when traditional IPOs (Initial Public Offerings) have made 0 dollars. This is according to Ukrainian MP Oleksiy Mushak, who took part in the presentation of a new report titled “Green Book: Cryptocurrency Market Regulation.” The legislator believes that it’s time for Ukraine to introduce light regulation to the industry, otherwise crypto businesses might opt for other countries like Malta, Gibraltar, Estonia, and even Belarus.
The authors of the study, associates at the BRDO (Better Regulation Delivery Office) analytical center, have tried to calculate the crypto turnover in various segments of the sector and determine the degree of state intervention needed for its further growth, Mind reports. The researchers have focused on market participants such as issuers of tokens, crypto exchanges, other online and offline traders, crypto miners.
Read alsoUkraine securities chairman wants to legalize ‘several’ cryptocurrencies – mediaFifteen ICOs have been conducted in 2017 and the first half of 2018, the released document revealed. The total capital raised in the token sales amounts to $132.7 million. Dream Team ($38 million), Rentberry ($30 million) and Dmarket ($10.5 million) are the top three projects. Eight other ICOs have not disclosed the amount of the capital they have collected. Ukrainian businesses have so far created 25 cryptocurrencies, according to Financial Club.
The yearly crypto mining turnover in Ukraine exceeds $100 million, the compiled data show. There have been attempts to add mining to the country’s register of economic activities. In March, Ukraine’s economy minister ordered several government agencies and the National Bank to draft documents reuired to this end.
The BRDO experts propose gradual introduction of regulations. They think most outstanding issues can be resolved by regulators. On the first stage, the Ministry of Finance and the State Fiscal Service can issue clarification notices to define cryptocurrency as an intangible asset, and the State Service of Special Communication and Information Protection can declare mining a license-free activity.
On the second stage, the law “On the Prevention of Money Laundering” can be amended to integrate the concepts of “virtual currencies.” The analysts also believe that changes are necessary to identify the providers of exchange services for financial monitoring purposes. Currently, Ukrainian exchanges experience huge problems with bank accounts, and crypto traders can’t rely on clear guidelines regarding taxation.
Read alsoUkrainian lawmakers invest US$7.3 mln in cryptocurrency in 2017 – mediaThe speakers at the presentation noted that if the lack of regulation initially benefited the crypto sector in Ukraine, now it is actually holding it back. The official government position is very important for its further development, they emphasized. According to Maksym Libanov, member of the National Securities and Stock Market Commission, the era of the gray market is already ending. “We see that the majority of market participants are no longer satisfied with this situation of legal uncertainty,” the official said.