Local miners who use solar panels to power their supercomputers will pay less for electricity.According to reports, the government of Uzbekistan will allow local businesses to mine digital assets using solar energy. All crypto mining companies will also be excluded from paying income tax.
The Central Asian country does not have a reputation for being a crypto-friendly location. Authorities prevented residents from purchasing digital assets at the end of 2019, but selling remained lawful.
The former Soviet republic considered making a U-turn and easing some of its prohibitions nearly a year ago. Uzbeks would be able to perform “all forms of crypto operations involving crypto assets and tokens in return for both domestic and foreign cash,” according to the government.
However, Uzbeks are still forbidden from purchasing bitcoin or altcoins under current laws, which do not apply to foreigners.
The government’s attention has now shifted to the digital asset mining industry. The authorities have suggested that Uzbek miners start using solar panels to power their supercomputers. Those that do so will pay less for electricity, while firms that are connected to the grid would pay twice as much.
Crypto miners in Uzbekistan do not need particular permission to operate, but they must register with the newly founded Uzbek National Agency for Perspective Projects.
Binance, the world’s largest cryptocurrency exchange, has taken notice of the Central Asian country’s growing crypto sector in recent years. The corporation announced earlier this year that it plans to expand its services to Russia and its surrounding nations, including Uzbekistan.
Gleb Kostarev, Binance’s Eastern European Director, spoke about the potential development. The platform’s purpose, he said, is to get regulatory approval wherever regulations allow it. People in Uzbekistan are “loyal” to the crypto industry, according to Kostarev, thus the trading venue may choose it as a destination:
They are more devoted to cryptocurrencies in Ukraine, Kazakhstan, and Uzbekistan, and are taking measures toward liberalization rather than restriction.
It’s worth noting that Kazakhstan, Uzbekistan’s northern neighbor, is a household name in the digital asset market, particularly in mining. It is second only to the United States in terms of global hash rate, with over 18 percent (35.4 percent ).
