Ukraine's State Service of Special Communication and Information Protection said cryptocurrency mining companies will not need to obtain a license in order to conduct their activities any more, online outlet coingeek.com reported on June 25, as Ukraine attempts to clean up its opaque regulation of cryptocurrencies.

The decision was made in response to an inquiry filed by the Better Regulation Delivery Office Organization (BRDO).

Cryptocurrency mining in Ukraine has grown very fast in Ukraine greatly increased over the last couple of years thanks to the very low cost of electricity. Crypto miners in Ukraine also enjoy low electricity cost of less than $0.04 per kWh – if they pay for their power at all; many miners use scams to get power for free.

The country reportedly earned revenues of more than $100mn from cryptocurrency mining companies. Crypto miners have moved to the country as it offers favourable conditions to mine cryptocurrencies.

However, as bne IntelliNews reported this week in a feature “Ukrainian cryptocurrency mining driven underground” the opaque nature of the laws covering the business and the aggressive security and tax services attitude to the business, crypto mining has been driven underground, stymieing the development of a sector with great potential.

According to market research miners in Ukraine can earn huge profits compared to their counterparts in Germany and Italy.

Specifically, bitcoin miners in countries with low electricity costs in emerging Europe spend less than $3,500 in mining cryptocurrencies like Bitcoin. On the other hand, miners in more developed countries like Germany typically spend about $7,964 to mine a single crypto coin. While the cumulative cost for mining in Germany is more than the current market price for the coin, the same process in Czech results in a profit of 100% per coin at current market prices for Bitcoin, according to a research conducted by Worldcore, an online payment service provider.

Ukraine’s BRDO points out that lack of regulation causes harm to the industry. According to BRDO, the lack of regulation has led to sanctions and threats from some authorities. Some crypto miners have lost essential equipment to authorities who claim their operations in the country are illegal, while others have ended up losing their hard earned cash due to lack of a clear regulatory framework, according to coingeek.com.

Currently, there are three bills on the docket in Ukraine's parliament covering the cryptocurrency sector. The first is on the circulation of cryptocurrency in Ukraine, the second focuses on stimulating the market of cryptocurrencies and their derivatives, while the third one is a supplementary draft on taxation of crypto incomes and profits.