Uzbekistan Allows Bitcoin Mining, Anonymous Cryptocurrency Forbidden And Must Use Solar Power

Uzbekistan allows bitcoin mining and bans anonymous crypto mining (Pixabay)

JAKARTA - Cryptocurrency mining is mushrooming, the executive government of Uzbekistan exempts all mined assets from taxation and prohibits anonymous currency mining. But there are still other conditions that must be met by the miners

The National Agency for Prospective Projects (NAPP) of Uzbekistan announced a regulation for crypto operators and miners. The rules explain that only companies that use solar energy are allowed to mine Bitcoin (BTC) or other cryptocurrencies.

Quoted from Cointelegraph, the government's written regulation dated June 24, explains the registration or registration guidelines for crypto asset mining activities. These guidelines will be finalized on 9 July. Meanwhile, there are other writings that are less italic for miners:

"Mining activities may only be carried out by legal entities using electrical energy, which is provided by photovoltaic solar power plants."

For further information, miners must first have a photovoltaic solar power plant that they will use for energy in mining cryptocurrencies.

The executive government also requires every mining operator to have a certificate and register with the national register of crypto mining companies. This procedure requires a short list of documents, and takes no more than 20 days from submission to final decision with the licensing and registrars bodies. Meanwhile, the certificate will be valid for one year after registration.

All currency mined from mining activities will be exempt from taxes, although miners will be charged a special rate for the energy consumed under Uzbekistan government regulations. However, transactions using mining results may only be carried out on official exchange platforms registered in Uzbekistan. Additionally mining for anonymous cryptocurrencies will be prohibited.

In April 2022, the newly restructured NAPP became the exclusive crypto regulator of Uzbekistan with a mission to adopt specific crypto regulations in the country. This move comes with a series of initiatives launched by the president of Uzbekistan, Shavkat Mirziyoyev to provide a specific regulatory framework in the crypto world. In September 2018, Mirziyoyev signed a law prohibiting local companies from launching their crypto exchanges in Uzbekistan. The government only offers legal status to crypto exchanges established by foreign legal entities.

Of course, this raises pros and cons among miners, on the one hand they are not taxed but still have to pay a special fee and the energy used must comply with the requirements submitted by the Uzbekistan government.