The government of Uzbekistan will reportedly allow local firms to mine digital assets using solar energy. It will also exempt all crypto mining operators from paying income tax.
Uzbekistan Urges for Using Solar Energy
The Central Asian country does not stand as a crypto-friendly destination. At the end of 2019, the authorities prohibited residents from purchasing digital assets while selling remained legal.
Nearly a year ago, the former Soviet republic contemplated a U-turn and lifting some of its restrictions. The government intended to allow Uzbeks to conduct “all types of crypto operations involving crypto assets and tokens in exchange for both domestic and foreign currency.”
However, according to current laws, Uzbeks are still prohibited from buying bitcoin or altcoins, while the legislation does not apply to foreigners.
A recent coverage by Reuters revealed that the government has now turned its focus towards the digital asset mining industry. The authorities have proposed that Uzbek miners should start powering their supercomputers with solar panels. Those who do so will pay less for electricity, while businesses connected to the power grid will pay double the regular price.
Local crypto miners do not have to obtain a special license to function, but they should be registered with the newly formed Uzbek National Agency for Perspective Projects.
Binance Finds Uzbekistan Attractive
The growth of the crypto sector in the Central Asian nation over the past few years caught the eye of the largest cryptocurrency exchange – Binance. Earlier this year, the company said it is looking to expand its services to Russia and its neighboring countries, as Uzbekistan was one of those.
Speaking on the possible expansion was Gleb Kostarev – Eastern European Director of Binance. He stated that the platform’s goal is to secure regulatory approval wherever regulations allow it. Kostarev added that people in Uzbekistan are “loyal” to the crypto sector, and as such, the trading venue might pick it as a destination:
“In Ukraine, Kazakhstan, and Uzbekistan, they are more loyal to cryptocurrencies and are taking steps towards liberalization rather than restriction.”
It is worth noting that Uzbekistan’s northern neighbor – Kazakhstan – is a well-known name in the digital asset industry, and more specifically in mining. It accounts for over 18% of the global hash rate, second only to the USA (35.4%).