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Bitcoin mining restricted to legal entities in Uzbekistan: Official

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Cryptocurrency mining in Uzbekistan is overcoming main modifications because the nation’s main crypto market supervisor has authorized a framework for licensing crypto mining operations.

Uzbekistan’s Nationwide Company for Perspective Initiatives (NAPP) issued a decree on licensing cryptocurrency mining operations, limiting such actions solely to authorized entities.

Aside from banning particular person miners’ operations, the NAPP has additionally required companies to solely use solar energy to mine cryptocurrencies like Bitcoin (BTC). Nonetheless, miners can nonetheless use the unified energy system of Uzbekistan in sure circumstances stipulated by the laws. The doc doesn’t point out what circumstances are meant.

Amongst different necessities, Uzbekistan’s cryptocurrency watchdog demanded corporations arrange a devoted room for putting in mining tools and solely mine crypto by the registered deal with. The principles additionally require crypto mining companies to supply well timed and full fee or mining charges established by regulators.

Moreover, the NAPP has banned miners from mining “nameless” cryptocurrencies, or these known as working primarily based on anonymity and hiding transactions. The authority was referring to privacy-focused cryptocurrencies like Monero (XMR), which permit customers to obfuscate community transactions.

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“All mining operations and providers are solely doable after acquiring a allowing doc and license within the prescribed method,” the NAPP wrote, including:

“The company additionally asks all residents to behave throughout the framework of the regulation and chorus from trying to arrange actions within the subject of circulation of crypto-assets with out acquiring the suitable license.”

It is unclear whether or not the NAPP’s newest crypto-mining doc is a ultimate decree establishing a framework for mining in Uzbekistan. The native authorities has issued a number of comparable paperwork in recent times, repeatedly prohibiting particular person miners from working in Uzbekistan. One such decree was signed by Uzbekistan’s President Shavkat Mirziyoyev in April 2022, reiterating that native individuals are not allowed to pay with crypto or to mine digital currencies.

The NAPP didn’t instantly reply to Cointelegraph’s request for remark.

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