The authorities in Uzbekistan have come up with a set of rules for governing crypto miners that are operating in the country and these will be put up for public consultations for now. Companies that are interested in minting digital currencies will have to go through a registration process with the Uzbekistan government and make use of renewable energy resources.
Draft regulations under discussion
The main watchdog in Uzbekistan is the National Agency for Perspective Projects. The agency comes directly under the administration of the country’s president Shavkat Mirziyoyev. NAPP’s director came up with a draft decree, which dictates that companies that are engaged in crypto mining will have to apply for registration and will also be required to renew the certificate each year.
They recently published the document for public consultations, which will be permitted to July 9th and a number of suggestions have already been given. The document includes some notable definitions that are relevant to the industrial operations involved in the mining of digital currencies. Some of these terms are mining equipment, miner, and crypto mining.
According to the decree, registration will be mandatory for crypto mining operations, but also noted that this activity does not require a license. Moreover, it will also demand that crypto miners use the electricity generated by photovoltaic stations and they will not be permitted to use their supply source for providing power to any third party.
In order to ensure that the hardware of bitcoin mining farms can function in a smooth and stable manner, they will be offered a connection to the national power grid. This will be accomplished via a separate electricity meter. This is only applicable during the peak consumption times, which are between 5 p.m. and 10 p.m., and at night between 10 p.m. and 6 a.m. A surcharge will be applicable as well.
However, it will be a must for entities to have an operational solar power station accessible for the generation of electricity, or else they will be considered in violation of the rules. The same rules would also apply to ‘hidden mining’. This is when ‘anonymous crypto assets’ are minted when a different mining location is specified as opposed to the actual one at the time of registration, or when someone else’s mining equipment is used without their permission.
It will also be necessary for certified miners to provide NAPP with details about the transactions that are conducted with the cryptocurrencies they mine. They will be required to comply with procedures and deadlines that are established by the regulatory authority. The cryptocurrencies that they mine as income will not be subjected to any tax. However, the decree said that all the digital coins minted have to be sold only on registered crypto exchange platforms in Uzbekistan.
It is not surprising that the authorities in Uzbekistan want to regulate crypto mining, as many other countries are also looking to ensure oversight this space with the popularity of the activity and also because of its consequences.