The National Agency for Perspective Projects (NAPP) of Uzbekistan Updates Requirements for Cryptocurrency Mining
The National Agency for Perspective Projects (NAPP) of Uzbekistan has released a decree outlining the updated requirements for cryptocurrency mining within the country. The regulatory body has made several key changes and clarifications in the regulatory framework.
Restrictions on Individual Operations
According to the decree, only legal entities will be allowed to engage in cryptocurrency mining, while individual operations are prohibited. This aligns with previous documents issued by the local government, including one signed by President Shavkat Mirziyoyev in April 2022.
Preference for Solar Power
The NAPP specifies that companies should primarily use solar power for their mining operations. However, there are conditions under which the unified power system of Uzbekistan can be utilized, although these conditions are not detailed in the current decree.
Dedicated Spaces and Prohibited Cryptocurrencies
Companies engaged in mining must establish specific spaces dedicated to mining equipment at their registered addresses. Additionally, the NAPP has set boundaries on the types of cryptocurrencies that can be mined, disallowing those that prioritize transaction anonymity such as Monero (XMR).
Permits and Licenses Required
To participate in mining activities or provide mining services, companies must obtain the necessary permits and licenses as stated by the NAPP. The agency emphasizes compliance with the legal framework and warns against engaging in any cryptocurrency-related activities without proper licensing.
Uncertainty Surrounding Decree Finality
The finality of this decree is yet to be confirmed as similar documents have been issued by the government in recent years. This raises questions about the definitive stance and framework for cryptocurrency mining in Uzbekistan.
Hot Take: Stricter Regulations for Cryptocurrency Mining in Uzbekistan
Uzbekistan has implemented stricter regulations for cryptocurrency mining, limiting it to legal entities and requiring the use of solar power. The government’s aim is to ensure compliance with the law and prevent unauthorized activities in the crypto sector. By prohibiting individual operations and specifying permitted cryptocurrencies, Uzbekistan seeks to create a controlled and transparent environment for mining activities. However, the lack of clarity regarding the finality of these regulations raises concerns about the stability of the country’s cryptocurrency mining framework. It remains to be seen how these measures will impact the crypto industry in Uzbekistan and whether they will attract or deter potential investors.
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