The Law on Virtual Assets does not affect the mining sector. Accounting issues, including the mining of cryptocurrencies, will be laid out in a profile bill amending the Tax Code. This was told to ForkLog by Konstantin Yarmolenko, head of the advisory group of the inter-factional association of MPs Blockchain4Ukraine.
According to him, mining of virtual assets (VA) is not subject to licensing as a VA provider, in line with FATF recommendations.
“Mining is not the kind of activity that requires licensing as a VA provider. Therefore it was not touched in the current law,” he explained.
At present, mining in Ukraine is not prohibited, provided it does not involve an unauthorized connection to the electrical grid for this activity.
Yarmolenko noted that the tax bill intends to establish zero VAT for all VA operations, with the exception of the sale of equipment or hardware wallets.
As noted, on September 8 the Verkhovna Rada of Ukraine passed the law “On Virtual Assets”.
The law defines virtual assets as an intangible asset that is a civil-rights object. They are divided into secured and unsecured. Cryptocurrencies are attributed to the second type. The normative act also defines VA providers and the procedure for obtaining permits to conduct activity.
Read ForkLog’s exclusive on the law.
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