Soon after the law on virtual assets has been approved by the Ukrainian Parliament, there have been confusions and uncertainties surrounding the Ukrainian crypto market as most of crypto investors are assuming that the law has imposed a ban on the activities of crypto trading and crypto mining. However, a very prominent Ukrainian advisor on cryptocurrencies has tried to clear the confusion and has suggested that passing of the law does not mean banning of any sort of activities relating cryptocurrencies at all. No one is debarred either from mining crypto or trading virtual currencies, claims Konstantin Yarmolenko, the Ukrainian Parliament’s prominent advisor.
A law defining “virtual assets” has been given approval by the country’s Parliamentarians in Verkohovna Rada i.e. the Parliament of Ukraine. Under the newly passed crypto law, virtual assets have been defined to mean “intangible assets”. However, soon after passing of the law, there was a confusion amongst Ukrainian crypto lovers. Because of the investors’ confusion, even the crypto miners operating in Ukraine were also confused. All of them were thinking as if the law has indirectly banned them from engaging with virtual currencies.
The major reason for this confusion stemmed from the law proposal itself. The newly passed law totally did not consider to mention crypto mining in any of its provisions. Instead, the law focused on regulating the transactions that were arising out of the use of virtual currencies.
However, in order to clarify the confusion, one of the prominent advisors to the Ukrainian Parliament, Konstantin Yarmolenko, commented on the law. He first of all informed that the no kind of a ban has been placed upon the use of cryptocurrencies. The crypto trading can be done as it was done before the passing of the law. Similarly, he clarified that no embargo has been placed upon any miners with regard to their mining operations. They can carry out their mining activities as they were prior to the law, he claimed.
Yarmolenko in fact suggested that the concerns of mining activity will be duly addressed in a separate law. The law he suggested was going to be the country’s taxation law and certainly the Government would want to impose tax upon crypto. He further clarified that the intent of the amendment to be incorporated in the tax code, would be for the benefit of crypto miners. The amendments are in the process of consideration and will be presented to the Parliament in the upcoming sessions.
Yarmolenko, is an advisor to the Ukrainian Parliament who particularly advises on matters of tax and crypto. Apart from rendering advisory services to the Ukrainian Parliament, Yarmolenko is a key executive of Blockchain4Ukraine. He further clarified that none of the miners are obligated to obtain any kind of operating licenses.