Uzbekistan's NAPP Sets New Rules, Approves Licensing Structure for Crypto Mining
Summary:
Uzbekistan's National Agency for Perspective Projects (NAPP) is changing the landscape for cryptocurrency mining by approving a licensing structure for crypto mining businesses. This directive restricts such operations solely to legally recognized entities and solar power use. The NAPP also demands companies to establish a dedicated room for mining equipment and has banned mining of "anonymous" cryptocurrencies. Mining operations are still permissible after proper documents and licenses have been obtained.
Significant transformations are occurring in Uzbekistan's cryptocurrency mining sector as the national cryptocurrency regulatory authority has endorsed a structure for licensing crypto mining enterprises. The National Agency for Perspective Projects (NAPP) of Uzbekistan has declared a mandate for licensing operations in cryptocurrency mining, restricting such endeavors solely to legalized entities. Not only has NAPP prohibited the operations of individual miners, but it has also directed companies to depend exclusively on solar energy to mine cryptocurrencies such as Bitcoin (BTC). Nonetheless, under specific legislated conditions, miners are permitted to utilize Uzbekistan's unified power system. The ruling doesn't specify the nature of these conditions.
Additionally, the national cryptocurrency regulator of Uzbekistan has insisted companies establish a distinct room designed for the placement of mining equipment and limit crypto mining to the registered address. Furthermore, firms engaged in crypto mining are obligated to ensure punctual and complete payment of mining fees as determined by regulatory bodies.
Moreover, NAPP has proscribed miners from mining so-called "anonymous" cryptocurrencies that operate based on maintaining transactional anonymity. This points to privacy-focused cryptocurrencies, for instance, Monero (XMR), that enable users to conceal network transactions.
In relation to Kazakh crypto miners urging the president to reduce energy prices, NAPP stated, "Only after acquiring the necessary documents and license as per the prescribed process, can mining operations and services be carried out," adding a reminder for all citizens to operate lawfully and refrain from initiating any activities related to the trade of crypto assets without first securing the necessary license.
Although it remains uncertain if NAPP’s most recent document regarding crypto-mining signifies a definitive framework for mining in Uzbekistan. Over the past years, the local government has released numerous similar declarations repeatedly prohibiting individual miners' operations in Uzbekistan. One such mandate was signed by Uzbekistan’s President Shavkat Mirziyoyev in April 2022, reasserting that local residents are prohibited from utilizing crypto for payments or mining digital currencies.
Cointelegraph is awaiting a response to their request for comment from NAPP. The report also mentioned updates on Web3 Gamer: Minecraft's ban on Bitcoin P2E, iPhone 15 & crypto gaming, and Formula E.
Published At
10/4/2023 1:15:24 PM
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