The cryptocurrency mining industry in Uzbekistan is set to undergo significant changes as the country’s crypto market regulator has approved a framework for licensing mining operations. The National Agency for Perspective Projects (NAPP) in Uzbekistan has issued a decree that limits cryptocurrency mining activities exclusively to legal entities, effectively banning individual miners. The NAPP has also mandated that firms engaging in mining operations must use solar power as their energy source, with the option to use the unified power system of Uzbekistan in certain cases specified by the legislation.
The decree includes several requirements for mining companies in Uzbekistan. It stipulates that companies must set up a dedicated room for installing mining equipment and conduct mining activities only at their registered address. Furthermore, crypto mining firms must ensure timely and full payment of mining fees as determined by regulators. The NAPP has also explicitly banned the mining of anonymous cryptocurrencies, which are characterized by their focus on user privacy and transaction obfuscation. This prohibition includes cryptocurrencies like Monero (XMR), which allow users to hide network transactions.
The NAPP stresses the importance of obtaining the necessary permits and licenses before engaging in any mining operations or services. The agency has urged all citizens to act within the framework of the law and refrain from attempting to organize activities related to the circulation of crypto-assets without the appropriate license. However, it remains unclear whether this latest decree from the NAPP represents a final and definitive framework for cryptocurrency mining in Uzbekistan. In recent years, the local government has issued multiple similar documents that have explicitly prohibited individual miners from operating in the country.
In April 2022, Uzbekistan’s President Shavkat Mirziyoyev signed a decree reiterating that local individuals are unable to make payments with cryptocurrencies or engage in digital currency mining. Given these past actions by the government, it is uncertain whether the current decree will be the ultimate regulation governing cryptocurrency mining in the country. As of now, the NAPP has not provided any further comments or clarification in response to inquiries from Cointelegraph.
The development of a licensing framework for cryptocurrency mining in Uzbekistan is a significant step towards regulating the industry in the country. By limiting mining activities to legal entities and requiring the use of solar power, the government aims to ensure that mining operations are conducted responsibly and in line with environmental considerations. The establishment of a dedicated space for mining equipment and the requirement for timely fee payments further contribute to the transparent and compliant operation of mining firms.
While the ban on mining anonymous cryptocurrencies may be seen as a restrictive measure, it aligns with the increasing global efforts to combat illicit activities and money laundering in the crypto space. By discouraging the use of privacy-focused cryptocurrencies, the Uzbekistani authorities are taking a proactive stance in promoting transparent financial practices.
The future of cryptocurrency mining in Uzbekistan will depend on how the government continues to refine its regulatory approach. It is crucial for the authorities to strike a balance between fostering innovation and ensuring the integrity and security of the financial system. As the crypto industry evolves, it is likely that further updates and adjustments to the regulatory framework will be necessary to adapt to emerging trends and challenges in the global market.
Source link
