Cryptocurrency Mining in Uzbekistan Undergoes Changes with New Licensing Framework
The cryptocurrency mining landscape in Uzbekistan is experiencing significant changes as the country’s crypto market supervisor approves a framework for licensing crypto mining operations. The National Agency for Perspective Projects (NAPP) in Uzbekistan has issued a decree that restricts cryptocurrency mining activities to legal entities only.
New Regulations and Requirements
Individual miners are now banned from operating, and companies are required to use solar power for mining cryptocurrencies like Bitcoin (BTC). However, there are exceptions where miners can still utilize the unified power system of Uzbekistan, although the specific cases are not mentioned in the document.
Other requirements include setting up a dedicated room for mining equipment installation and conducting mining operations only at the registered address. Additionally, crypto mining firms must ensure timely payment of mining fees determined by regulators.
Ban on Anonymous Cryptocurrencies
The NAPP has also prohibited the mining of anonymous cryptocurrencies, such as Monero (XMR), which prioritize privacy and conceal transaction details.
“All mining operations and services are only possible after obtaining a permitting document and license in the prescribed manner,” stated the NAPP.
Uncertainty Surrounding Decree
It remains unclear whether this latest decree from the NAPP establishes a definitive framework for cryptocurrency mining in Uzbekistan. The local government has previously issued similar documents that prohibit individual miners from operating within the country. One such decree was signed by President Shavkat Mirziyoyev in April 2022, reiterating the ban on using crypto for payments or engaging in digital currency mining.
The NAPP has not yet responded to Cointelegraph’s request for comment.
Hot Take: Upholding Regulation for a Sustainable Crypto Mining Industry
The approval of a licensing framework for cryptocurrency mining in Uzbekistan reflects the country’s commitment to regulating the industry and ensuring its sustainability. By limiting mining operations to legal entities and promoting the use of solar power, Uzbekistan aims to create a more controlled and environmentally friendly mining ecosystem. The ban on anonymous cryptocurrencies further emphasizes the government’s focus on transparency and accountability. While there may be uncertainty surrounding the finality of this decree, it demonstrates Uzbekistan’s efforts to establish clear guidelines for crypto mining activities.
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