- Uzbekistan’s NAPP has approved a regulatory framework for cryptocurrency mining.
- The new regulation mandates licensing and use of solar energy for mining.
- The NAPP forbids mining of anonymous cryptocurrencies and unlicensed operations.
The National Agency for Perspective Projects (NAPP) in Uzbekistan has recently approved a regulatory framework for licensing cryptocurrency mining activities. This development signifies a substantial shift in the country’s cryptocurrency mining landscape. The new regulation mandates that all cryptocurrency mining operations obtain licenses, limiting this activity to authorized businesses only.
The NAPP has decreed that businesses must exclusively use solar energy for Bitcoin and other cryptocurrency mining. This regulation also prohibits the operations of individual miners. However, the national legislation does allow for exceptions, permitting miners who require access to the country’s centralized power grid.
Rigorous Compliance
Furthermore, the Uzbekistan cryptocurrency regulatory authority has stipulated, among other requirements, that businesses must allocate a dedicated space to install mining equipment and that all cryptocurrency mining activities must be conducted at the registered business address. Additionally, the regulations mandate that cryptocurrency mining firms fully and punctually pay all fees.
The NAPP strictly forbids the mining of anonymous cryptocurrencies designed to conceal transaction details. As per the NAPP regulations, engaging in mining operations or offering mining-related services without obtaining the necessary permits and licenses is considered unlawful.
The latest publication on crypto-mining from the NAPP may not necessarily establish a concrete regulatory structure for mining activities in Uzbekistan. Furthermore, over the past few years, the Uzbekistan government has issued several comparable decrees, all aimed at prohibiting private miners from operating within the country.
In April 2022, a decree reaffirmed the prohibition on using cryptocurrencies for transactions or mining activities was issued by Shavkat Mirziyoyev, the President of Uzbekistan.
