Overview of Uzbekistan's New Crypto Mining Regulations
Uzbekistan's cryptocurrency mining sector is undergoing significant regulatory changes. The National Agency for Prospective Projects (NAPP), the country's crypto market regulator, has approved a new licensing framework for cryptocurrency mining operations.
Key Provisions of the Mining License Framework
- Legal Entity Requirement
Mining activities are now restricted to registered legal entities only, effectively banning individual miners. - Sustainable Energy Mandate
Companies must utilize solar power for mining cryptocurrencies like Bitcoin, though exceptions allow usage of Uzbekistan's unified power system under undefined "legislative cases." Operational Restrictions
- Dedicated facilities required for mining equipment installation
- Mining permitted only at registered business addresses
- Full payment of government-set mining fees mandatory
- Cryptocurrency Prohibitions
Mining anonymous/privacy-focused coins (e.g., Monero) is expressly forbidden.
Regulatory Context and Enforcement
NAPP's statement emphasizes:
"All mining operations and services may only commence after obtaining proper licensing documentation through established procedures."
This continues Uzbekistan's pattern of tightening crypto controls. President Shavkat Mirziyoyev previously banned:
- Cryptocurrency payments (April 2022 decree)
- Local digital currency mining by individuals
Unresolved Questions
- Whether this constitutes the final mining framework
- Specific conditions for grid electricity usage exceptions
- Detailed fee structures for licensed miners
Industry Implications
The regulations aim to:
- Centralize mining oversight
- Promote renewable energy adoption
- Prevent anonymous transactions
- Generate state revenue through licensing
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FAQ: Uzbekistan's Crypto Mining Rules
Q: Can foreign companies mine Bitcoin in Uzbekistan?
A: Yes, if registered as a legal entity within the country and compliant with licensing requirements.
Q: What happens to existing individual miners?
A: They must either incorporate as businesses or cease operations to avoid penalties.
Q: How does the solar power requirement affect profitability?
A: Initial infrastructure costs may increase, but long-term energy savings could offset this.
Q: Are other proof-of-work cryptocurrencies affected?
A: The regulations apply to all mineable coins, with extra restrictions on privacy coins.
Q: When do these rules take effect?
A: Immediately upon publication, though transitional periods may apply for compliance.
Q: Where can companies apply for mining licenses?
A: Through NAPP's official channels - exact procedures await further clarification.
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Note: This reform reflects Uzbekistan's balancing act between embracing blockchain innovation and maintaining financial control. Similar regulatory trends are emerging across Central Asia.