The Republic of Uzbekistan Approves New Regulations for Cryptocurrency Mining Licenses
The National Agency for Advanced Projects (NAAP) in Uzbekistan has released new regulations for issuing licenses for cryptocurrency mining activities. The framework, which was hinted at by the deputy director of NAAP, Vyacheslav Pak, in an interview back in August, has finally been approved. According to the regulations, only legal entities are allowed to engage in crypto mining using electricity produced by a solar photovoltaic station. Miners can also connect to a unified electrical power system with a separate electric energy meter.
“The organization of mining activities and service providers is possible only after receiving a permitting document and a license in the prescribed manner.”
The agency is urging citizens to comply with the law and avoid engaging in any unregistered crypto mining activities. Additionally, they are warning users against using services provided by unlicensed service providers in Uzbekistan.
The Framework – What You Need to Know
Miners are allowed to sell crypto-assets obtained through mining on licensed crypto exchanges operating as service providers in the country. The permit to operate is issued by NAAP for a period of five years, and miners are required to report information on their operations upon request from the authorized body. It is also important for miners to ensure the technical correctness of the electrical supply system at their mining site, considering safety and technical standards.
So far, NAAP has granted licenses to one crypto exchange, one crypto depositary, and ten other crypto trading platforms in Uzbekistan. The agency has also been in discussions with global exchanges such as Binance, Huobi, and Bybit about potentially establishing operations in the country.
Hot Take: Uzbekistan Establishes New Regulations for Cryptocurrency Mining Licenses
The Republic of Uzbekistan has taken a significant step towards regulating cryptocurrency mining activities by approving new regulations for issuing licenses. With a focus on promoting legal compliance and safety, the National Agency for Advanced Projects (NAAP) has introduced a framework that allows only legal entities to engage in crypto mining using specific sources of electricity. By implementing these regulations, Uzbekistan aims to create a secure environment for miners while also attracting global crypto exchanges to establish operations in the country. This move demonstrates Uzbekistan’s commitment to embracing the potential of cryptocurrencies and ensuring responsible industry growth.
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