Bitcoin Mining Limited to Legal Entities in Uzbekistan: Disclosure
Cryptocurrency mining in Uzbekistan is undergoing major changes as the country's crypto market regulator approved a framework for licensing crypto mining operations.
Uzbekistan's National Agency for Prospective Projects (NAPP) issued a decree on licensing cryptocurrency mining operations, limiting such activities to legal entities only.
In addition to banning the work of individual miners, the NAPP also required companies to use only solar power to mine cryptocurrencies such as Bitcoin (BTC). However, miners can still use Uzbekistan's unified energy system in certain cases stipulated by law. The document does not specify what cases it refers to.
Among other requirements, Uzbekistan's cryptocurrency regulator has asked companies to set up mining equipment and a dedicated unit to install mine-only crypto at a registered address. The regulations require crypto mining companies to provide timely and full payment of mining fees established by regulators.
In addition, NAPP prohibited miners from producing anonymous cryptocurrencies – those that operate anonymously and hide transactions. The authority said privacy-focused cryptocurrencies such as Monero (XMR) allow users to obfuscate network transactions.
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“All mining activities and services are permitted only after obtaining the permit document and permit in the prescribed manner,” NAPP wrote.
“Also, the agency requires all citizens to work within the framework of the law and to refrain from organizing activities in the field of crypto-assets circulation without obtaining the appropriate license.”
It is not clear whether NAPP's latest crypto-mining document is the final decree establishing a mining framework in Uzbekistan. The local government has issued several similar documents in recent years, repeatedly banning individual mines in Uzbekistan. One such decree was signed by the President of Uzbekistan, Shavkat Mirziyoyev, in April 2022, which reiterated that locals cannot pay in crypto or mined digital currencies.
NAPP did not immediately respond to Cointelegraph's request for comment.
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