According to reports, Uzbekistan’s government has officially approved crypto mining activities. However, crypto mining companies will only be permitted to operate using renewable energy sources such as solar power.
Cryptocurrency Mining To Be Conducted Using Only Solar Power
Uzbekistan has just legalized crypto mining, but only under one strict condition: all mining firms and facilities must utilize solar power to fuel their continuous activities to be considered lawful. Companies that use solar power for their mining activities will be exempted from paying any tax due to the nation’s tax incentive program.
This legislation is a great way to encourage the use of renewable energy sources while also ensuring that Bitcoin mining is financially viable in the long run.
Solar power has also received attention from the Deputy Prime Minister of Uzbekistan, Sardor Umurzakov, who said that the state acknowledges the value of this renewable power source and would continue to encourage its usage. Apart from that, Umurzakov said that solar energy is “not only trendy,” but is also a great choice for the creation of a sustainable economic structure.
For the state to enforce this new rule, it has also announced that any crypto mining operations that choose to utilize electricity from the major grid stations would be required to pay twice the amount of taxes that are now levied under the current law. In addition, if there is an increase in demand, extra fees will be charged to compensate for this.
Uzbekistan is well-known for its commitment to the development of renewable energy. In August, the government announced the completion of its first-ever green energy project, which included a 100MW solar power plant.
According to the proposed rules, new crypto mining companies and equipment must enroll their activities with the Uzbekistan National Agency as well as provide full transparency on the type of power they will be using to fuel their crypto mining operations in the country.
Kazakhstan And Cryptocurrency Mining
On the other hand, Kazakhstan, a neighboring country to Uzbekistan, outlawed the usage and mining of cryptos owing to the high power consumption. This power usage placed stress on the nation’s major power system since the nation’s power grid is heavily reliant on coal extraction. After some time had elapsed, the nation permitted the continuation of mining activities.
However, the tax rates for crypto mining operations were raised excessively high, making it impossible for mining operations to operate in the area. Also, new stringent laws were introduced that requires mining companies to be resident of the country.