Uzbekistan Presents Registration Requirements for Cryptocurrency Miners

Uzbek authorities have drafted a set of regulations for crypto mining operating in the country and submitted them for public consultation. Companies wishing to mine digital currencies must register with the government and use renewable energy.

Uzbekistan Discusses Draft Regulations for Crypto Mining Sector

According to a draft decree by the head of Uzbekistan’s National Agency for Perspective Projects, businesses involved in cryptocurrency mining will have to register and renew their certificates annually. NAPP is the country’s main crypto watchdog agency and is directly subordinate to the administration of President Shavkat Mirziyev.

The document was recentlypublishedand has already attracted a number of proposals for public consultation, which will continue until July 9. The document introduces key definitions related to the industrial activity of digital currency extraction, including terms such as crypto-miner, miner, and mining equipment.

The decree states that crypto mining is subject to mandatory registration, but notes that it is not an activity that requires a license. In addition, crypto miners are required to use electricity produced by solar power plants and are prohibited from providing electricity to third parties from a source of supply.

Bitcoin mining farms will also be allowed to connect to the national power grid through a separate electricity meter to ensure stable operation of their hardware. This will apply during peak consumption hours from 5:00 PM to 10:00 PM and at night from 10:00 PM to 6:00 AM, for which they will pay a surcharge.

However, failure to use a solar power plant that is operating in a condition to generate electricity will be considered a violation of the rule. The same applies to “hidden mining” using someone else’s hardware without their knowledge, mining in a different location than the one specified during registration, and casting “anonymous crypto assets.”

Accredited miners are required to submit information about their mined cryptocurrency transactions to the NAPP and follow the deadlines and procedures set by the regulatory agency. They do not pay taxes on crypto assets received as income. Minted digital coins must only be sold on nationally registered crypto exchange platforms, the decree states.

Image credits: Shutterstock, Pixabay, Wiki Commons