Uzbekistan’s National Agency of Prospective Projects (NAPP) made public its expectations of cryptocurrency mining companies. Only businesses that employ solar energy would be permitted to mine Bitcoin (BTC) or other cryptocurrencies.
The normative act, dated June 24, on the government website, outlines the confirmation of “Guidelines on the registration of the crypto assets mining,” and it establishes July 9 as the completion date. The document’s second article uses uncompromising language in the following manner:
“Mining is being carried out only by the legal entity with the use of electric energy, provided by a solar photovoltaic power plant.”
Uzbekistan says that miners should own solar photovoltaic power plant
Any mining operation must also receive a certificate and register with the national registration of cryptocurrency mining enterprises, according to the executive directive.
A short list of papers is required for this process, and it shouldn’t take more than 20 days from submission to the licensing body’s final judgment. After registration, the certificates are good for a year.
All of the money made from mining operations would be exempt from taxation, but the mining farms would be subject to special energy consumption tariffs set by the Uzbek government.
However, only exchange platforms with Uzbek registration numbers would be permitted to perform trade activities using mined assets. It would be forbidden to mine coins that are anonymous.
With the goal of implementing unique crypto regulating regime in the nation, the recently reformed NAPP was designated as the exclusive cryptocurrency regulator for Uzbekistan in April 2022. This action was one of several that President Shavkat Mirziyoyev of Uzbekistan has taken to establish the regulatory environment for cryptocurrencies.
A regulation barring local businesses from establishing their own cryptocurrency exchanges in Uzbekistan was signed by Mirziyoyev in September 2018. Only cryptocurrency exchanges founded by foreign legal companies were given legal standing by the law.