Thu, November 21

Uzbekistan Cracks Down on Crypto Mining With New Licensing Framework

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  • The NAPP has mandated that businesses only utilize solar power to mine cryptocurrencies.
  • Uzbekistan has issued a rule requiring licensing for crypto mining operations.

With the approval of a framework for licensing crypto mining activities by the country’s crypto market regulator, crypto mining in Uzbekistan is about to undergo significant change. The National Agency for Perspective Projects (NAPP) in Uzbekistan has issued a rule requiring licensing for crypto mining operations. Thus restricting crypto mining to legitimate businesses.

The NAPP has mandated that businesses only utilize solar power to mine Bitcoin and other cryptocurrencies. In addition to outlawing the activities of private miners. The country’s law does provide exceptions for miners that need to tap into the country’s centralized electricity grid.

Stringent Compliance

Moreover, the crypto regulator in Uzbekistan mandated, among other things, that businesses have a separate room set aside for installation mining equipment and that all cryptocurrency mining be done at the registered address. Also, regulations stipulate that cryptocurrency mining companies must pay mining fees in whole and on schedule.

Mining anonymous coins, which are built on anonymity and disguising transactions, is also prohibited under the NAPP. According to the NAPP, doing any kind of mining activity or providing any kind of mining service is illegal without first getting the appropriate permits and licenses.

The recent crypto-mining paper from the NAPP may or may not be a definitive regulation setting a framework for mining in Uzbekistan. Also, in recent years, the Uzbek government has published a number of similar decrees, all of which forbid private miners from doing business in the country.

In April 2022, Uzbekistan’s President Shavkat Mirziyoyev issued a proclamation restating the country’s ban on citizens using crypto for purchases or cryptocurrency mining.

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