Uzbekistan approves crypto mining under special guidelines

thepiperumbrella June 29, 2022

31 2 minutes read

Uzbekistan approves crypto mining under special guidelines

Uzbekistan is warming up to cryptocurrency mining operations. The National Agency of Prospective Projects (NAPP) in Uzbekistan has issued guidelines that will govern crypto mining operations. However, the country will only permit mining activities from solar energy companies to mine Bitcoin and other cryptocurrencies.

Uzbekistan approves crypto mining

The government published a normative act on June 24 that addresses the approval of the “Guidelines on the registration of the crypto assets mining.” The act has set July 9 as the finalization date. The second article on the document also comes with stern provisions.

“Mining is being carried out only by the legal entity with the use of electric energy, provided by a solar photovoltaic power plant,” the document said. The agency also said that mining companies needed to own the photovoltaic power plant that would be used for energy.

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The executive order also requires the mining operators to seek the necessary certifications and to be registered with the national registry of crypto mining companies. The registration process will require the crypto miner to submit several documents. The agency will take 20 days or less to make the final decision. The acquired certificates will have a validity of one year.

Mining activities will not be taxed

The currency produced from these mining activities will not be taxed. However, the mining companies will have to pay special tariffs based on consumed energy. However, trading with these mined assets will be carried out on the exchange registered in Uzbekistan. The NAPP has also prohibited the mining of anonymous coins.

In April this year, the NAPP was appointed by Uzbekistan as the exclusive cryptocurrency regulator. The mission of this agency is to create a special crypto regulatory framework in Uzbekistan.

The president of Uzbekistan, Shavkat Mirziyoyev, has launched several initiatives to regulate the country’s crypto market. In September 2018, the president banned local firms, preventing them from opening crypto exchanges within the country. The president’s law only approved the operations of exchanges from foreign nations.

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