The Uzbekistan agency that oversees prospective projects has given out orders over crypto mining activities in the country. The order authorized companies that use solar power for mining activities to keep mining Bitcoin and other digital assets.
Uzbekistan Regulators Issued Out Mining Guidelines
On the 24th of June, the country’s regulators posted a normative act on their official page. The act on the post entailed a detailed executive order and instructions for mining crypto assets in the country.
According to the post, the act was officially finalized on July 9. Furthermore, the post explicitly stated that only legalized crypto assets can be mined.
It continued that miners can only mine with electrical power generated by a photovoltaic solar plant owned by the miners. In other words, miners are not allowed to mine with the country’s electricity nor to mine unregistered assets.
Henceforth, miners are required to register and apply for certificates before they start mining as stated by the new order. Each certificate must be issued by the national registry in charge of crypto mining.
In addition, a potential miner would need to submit certain documents to the agency during registration. Also, it takes about 20 days of thorough processing before a miner can be issued a license.
However, the license is only valid for one year before it expires and miners would need a new one. Also stated in the act was that no tax would be paid on any profits realized from mining operations.
However, the regulators of Uzbekistan would deduct special tariffs on energy the mining farms consumed. Additionally, crypto mining assets are only allowed on exchange platforms that are legalized by the country’s regulators.
To cap it all, miners are restricted from mining coins that are not listed on the exchange they are using. All these orders were from NAPP who now oversees the affairs of crypto in the country.
Regulators Authorized NAPP To Oversee Crypto Activities
The National Agency of Prospective Projects, NAPP, was newly-reformed in April this year. The same month, the Uzbekistan regulators authorized it to oversee and regulate all crypto activities in the country.
It was also charged with the duty of modeling a crypto regulatory framework for the country. The Uzbekistan President, Shavkat Mirziyoyev authorized the development in a bid to create a crypto regulatory framework.
Initially, in 2018, Mirziyoyev passed a law that banned local companies from owning crypto exchanges in the country. According to the report, he only allowed foreign crypto companies that are registered to launch their exchanges.