Uzbekistan National Agency for Perspective Projects (NAPP) has enforced significant changes in the bitcoin mining landscape. The regulatory body has officially approved a comprehensive framework for licensing crypto mining operations within the country.
Regulations for Cryptocurrency Mining Operations
Under the newly issued decree by NAPP, cryptocurrency mining activities are now restricted exclusively to legal entities. This move effectively bans individual miners from engaging in mining operations within Uzbekistan.
One notable requirement outlined by NAPP is the mandatory use of solar power for cryptocurrency mining. Legal entities engaging in mining operations must adhere to this eco-friendly approach. However, the document does mention specific cases where miners can still utilize the unified power system of Uzbekistan, though details on these cases remain undisclosed.
Infrastructure and Operational Requirements
To ensure compliance, NAPP has set stringent conditions for crypto mining firms. These include the establishment of a dedicated room for installing mining equipment and restricting mining activities to the registered address. Additionally, companies are obligated to make timely and full payments of mining fees as established by regulatory authorities.
Prohibition of Anonymous Cryptocurrencies
In a move to enhance transparency, NAPP has explicitly banned the mining of anonymous cryptocurrencies. This prohibition targets privacy-focused digital assets like Monero, known for obscuring network transactions. The regulatory authority emphasizes that all mining operations and services can only proceed after obtaining the required permitting documents and licenses.
Uncertainties Surrounding the Decree
While this latest decree from NAPP provides a detailed framework for cryptocurrency mining, uncertainties persist regarding its finality. The local government has issued several similar documents in recent years, repeatedly reinforcing the prohibition on individual miners.
The latest decree follows a pattern of governmental restrictions, including a previous decree signed by President Shavkat Mirziyoyev in April 2022, reiterating the restriction on local individuals conducting crypto transactions or mining digital currencies.