Cryptocurrency mining in Uzbekistan is facing major changes as the cryptocurrency market watchdog has approved a licensing framework for cryptocurrency mining operations.
The National Agency for Future Projects of Uzbekistan (NAPP) has issued a resolution to issue licenses for cryptocurrency mining operations, limiting such activities to legal entities only.
In addition to banning individual miners, NAPP also requires companies to use only solar energy to mine cryptocurrencies such as Bitcoin (BTC). However, in some cases provided for by law, miners can still use the unified energy system of Uzbekistan. The document does not specify which cases are discussed.
Among other things, the Cryptocurrency Supervision Service in Uzbekistan required companies to create special premises for the installation of cryptocurrency mining and exploitation equipment only at a registered address. The rules also require cryptocurrency mining companies to ensure full and timely payment of mining fees set by regulators.
In addition, NAPP prohibited miners from mining anonymous cryptocurrencies, which operate on the basis of anonymity and hide transactions. Authorities pointed to privacy-focused cryptocurrencies such as Monero (XMR) that allow users to embezzle online transactions.
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"All mining operations and services are only possible after obtaining authorizations and licenses in accordance with the established procedure," the NAPP wrote, adding:
"The agency also calls on all citizens to act within the law and refrain from attempts to organize activities in the field of circulation of cryptocurrencies without obtaining the appropriate license."
It is unclear whether the latest NAPP document on cryptocurrency mining is a final decree establishing the regulatory framework for mining in Uzbekistan. The local government has issued numerous similar documents in recent years, repeatedly banning individual miners from working in Uzbekistan. One such decree was signed by Uzbekistan's President Shavkat Mirziyoyev in April 2022, which reaffirmed that local residents cannot pay with cryptocurrencies or mine digital currencies.
NAPP did not immediately respond to Cointelegraph's request for comment.
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