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Significant transformations are underway in Uzbekistan’s cryptocurrency mining sector as the nation’s crypto market regulator has sanctioned a framework for the licensing of crypto mining activities.
The National Agency for Perspective Projects (NAPP) of Uzbekistan has released a decree concerning the licensing of cryptocurrency mining operations, restricting these activities solely to legal entities.
In addition to prohibiting individual miners, the NAPP has mandated that companies utilize solar energy for mining cryptocurrencies such as Bitcoin (BTC). Nevertheless, miners are permitted to access Uzbekistan’s unified power system under specific conditions outlined by the legislation. The document does not clarify what these conditions entail.
Among other stipulations, Uzbekistan’s cryptocurrency regulatory body has required firms to establish a designated area for the installation of mining equipment and to conduct mining activities solely at their registered locations. The regulations also stipulate that crypto mining companies must ensure timely and complete payment of mining fees set by the authorities.
Furthermore, the NAPP has prohibited miners from engaging in the mining of anonymous cryptocurrencies—those that operate on principles of anonymity and conceal transactions. This refers to privacy-oriented cryptocurrencies like Monero (XMR), which enable users to obscure their network transactions.
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“All mining operations and services can only proceed after acquiring the necessary permit and license in accordance with the established procedures,” the NAPP stated, adding:
“The agency also urges all citizens to operate within the legal framework and avoid attempting to organize activities related to the circulation of crypto-assets without the appropriate license.”
It remains uncertain whether the NAPP’s recent document on crypto mining represents a definitive decree establishing a framework for mining in Uzbekistan. The local government has issued several similar documents in recent years, consistently prohibiting individual miners from operating within the country. One such decree was signed by President Shavkat Mirziyoyev in April 2022, reiterating that local residents are not permitted to use crypto for payments or mine digital currencies.
The NAPP has not yet responded to Cointelegraph’s request for a statement.
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