Regulatory Revival: Ukraine Advocates Mining Regardless, SEC Commissioner Proposes Safe Harbor for Startups

After Bitcoin reached over 10,000 yuan in the past 4 months, the overall network hash rate is still steadily increasing. On February 6, the number of Bitcoin transactions on the chain also reached 360,000, a level not seen in nearly four months. This is undoubtedly good news for miners; new projects also tend to emerge when the market is recovering.

Bitcoin has climbed to over 10,000 yuan in the past four months, and the network's computing power is still steadily increasing. On February 6th, the number of Bitcoin transactions on the chain also reached 360,000, a level not seen in nearly four months. This is undoubtedly good news for miners; new projects often choose to launch when the market is booming.

Ukraine's new mining policy should also be of interest to miners and governments worldwide.

Last Friday, Ukraine's Ministry of Digital Transformation stated that mining activities are part of constructing an open decentralized network. Mining does not require regulation by government agencies or other third-party methods, and the activity should be regulated by the protocol itself and network members.

Ukrainian authorities stated that even if not bound by national laws or not defined by national laws, they still support any innovation using digital technology. However, Ukraine is not granting direct approval and will create a sandbox for evaluation and implementation to test market demand and risk management.

Not only in mining, but also on the previous Thursday, the proposal by U.S. SEC Commissioner Hester Peirce may give ICO projects more development time.

The SEC determines that token activities involving unregistered securities are illegal, and has taken legal action against companies issuing and selling tokens such as Telegram and Kik, putting pressure on many startups. The commissioner proposed that cryptocurrency startups have a three-year grace period from ICO (initial coin offering) until passing the SEC's evaluation based on U.S. securities laws.

As a safe harbor for projects, this proposal is meaningful. Hester Peirce stated that some tokens may have securities attributes at the time of issuance, but as the network matures, the tokens may no longer have securities attributes. As noted in the proposal, "The analysis of whether a token is offered or sold as a security is not static." In other words, tokens may evolve from securities to non-securities without being subject to regulations on "unregistered securities."

Hester Peirce's proposal defines two elements: "Initial Development Team" and "Network Maturity." The "Initial Development Team" will be responsible for network development in the first three years, while "Network Maturity" refers to the extent to which the network can operate without being controlled by a single entity or individual.

The "Initial Development Team" must provide full disclosure of members and transparently disclose token distribution and mechanisms. For "Network Maturity," a clear roadmap must be provided, and when tokens should no longer be considered securities transactions must be clearly stated.

In the past, Hester Peirce has proposed similar ideas multiple times. If this formal proposal is approved, projects in the "initial development stage" will be required to provide strict information disclosure, and in return, they may have a longer development period and legally circulate tokens in the secondary market.

Related Reading

• China's Strict Regulations vs. Czech Republic's Lack of Regulations: Attitudes of Various Countries Towards Cryptocurrency Mining
• U.S. SEC's Strong Intervention: Telegram Cannot Guarantee Realization of Any Applications

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