Cryptocurrency mining in Uzbekistan is set to undergo significant changes as the country's major crypto market supervisor, the National Agency for Perspective Projects (NAPP), has issued a decree for licensing crypto mining operations. Under the new framework, only legal entities will be allowed to engage in mining activities, while individual miners are banned.
Transition to clean energy
The NAPP's decree also mandates that crypto mining firms in Uzbekistan must exclusively use solar power for their operations, thereby promoting sustainability and reducing the environmental impact of mining activities. However, in certain cases defined by legislation, miners can still utilize the unified power system of Uzbekistan.
Strict requirements for mining operations
In addition to the ban on individual miners, the NAPP has set out a list of requirements that mining companies must adhere to. These include setting up a dedicated room for installing mining equipment and only mining cryptocurrencies from the registered address. Crypto mining firms are also required to make timely and full payments of mining fees established by regulators.
Ban on "anonymous" cryptocurrencies
The NAPP has also prohibited miners from mining "anonymous" cryptocurrencies, specifically mentioning privacy-focused coins like Monero (XMR), which enable users to obscure network transactions. This move aims to enhance transparency and prevent illicit activities.
Compliance and legality
The NAPP emphasized that all mining operations and services can only be carried out after obtaining the necessary permit and license in accordance with the law. It also called on all citizens to refrain from engaging in crypto-related activities without obtaining the appropriate license.
Uncertainty over decree's finality
It remains unclear whether the recent crypto-mining decree by the NAPP is the definitive framework for mining in Uzbekistan. The government has issued similar documents in the past, repeatedly forbidding individual miners from operating in the country. President Shavkat Mirziyoyev signed a decree in April 2022 reiterating that using cryptocurrencies as a means of payment or engaging in mining is prohibited for local residents.
Cointelegraph reached out to the NAPP for comment, but did not receive an immediate response.
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