The National Agency for Perspective Projects (NAPP) of Uzbekistan has recently released a decree outlining updated requirements for cryptocurrency mining within the country. This move highlights the government’s continued efforts to regulate and control the cryptocurrency industry.
One of the key changes highlighted in the decree is that only legal entities will be permitted to engage in cryptocurrency mining, effectively disallowing individual operations. This is consistent with previous documents issued by the local government, which have also implemented restrictions on cryptocurrency transactions and mining for local residents. This move indicates the government’s desire to maintain oversight and prevent potential illicit activities associated with individual mining operations.
In terms of energy sources, the NAPP has specified that companies engaged in cryptocurrency mining should predominantly use solar power. This aligns with the country’s focus on renewable energy sources and showcases their commitment to minimizing the environmental impact of mining activities. However, the decree also mentions that there are conditions under which the unified power system of Uzbekistan can be utilized, without providing further details on those conditions.
Infrastructure-wise, the NAPP requires companies to establish dedicated spaces for mining equipment. This requirement ensures that mining operations are conducted in a controlled and regulated manner, with a clear distinction between mining activities and other business activities. All mining operations should take place at the registered addresses of these companies, further emphasizing the need for transparency and accountability.
The decree also outlines the specific types of cryptocurrencies that can be mined within Uzbekistan. Cryptocurrencies that emphasize transaction anonymity, such as Monero (XMR), are not permitted for mining under the new regulations. This restriction is likely aimed at preventing potential misuse of cryptocurrencies for illicit activities and ensuring that all mining activities are transparent and traceable.
To engage in mining activities or services, companies are required to obtain the necessary permits and licenses as stated by the NAPP. The agency has stressed the importance of operating within the legal framework and has urged all participants to avoid any cryptocurrency-related activities without the required licenses. This emphasizes the government’s commitment to regulating the industry and maintaining oversight over cryptocurrency mining operations.
However, it is important to note that the finality of this decree is yet to be confirmed. The government has issued several similar documents over the recent years, leading to questions regarding the definitive stance and framework for cryptocurrency mining in Uzbekistan. It remains to be seen how these regulations will be enforced and whether there will be any further amendments or clarifications in the future.
Overall, the release of this decree by the NAPP signifies Uzbekistan’s proactive approach to regulating the cryptocurrency industry and ensuring that mining activities are conducted in a controlled and accountable manner. By setting clear requirements and restrictions, the government aims to strike a balance between supporting innovation and safeguarding against potential risks associated with the cryptocurrency market.
