Uzbekistan Goes Solar for Crypto, Kazakhstan Cuts Back Mining By CoinQuora

Uzbekistan Goes Solar for Crypto, Kazakhstan Cuts Back Mining

    • Uzbekistan introduces a tax-free, solar-powered solution for crypto miners.
    • Firms to pay double to use regular energy for mining.
    • Kazakhstan tightens its grip on the crypto industry with strict rules and regulations.

According to a presidential directive issued this week, Uzbekistan seeks to lure cryptocurrency miners away from coal by allowing the use of solar power inside the strictly regulated local sector. The government thinks charging miners a premium amount for electricity obtained from the main grid would speed their move towards solar energy.

Additionally, the Central Asian country will waive income tax for both international and domestic crypto firms. Despite major power disruptions earlier this year, Uzbekistan hopes to stimulate growth in its indigenous crypto mining industry by making drastic changes.

Sources say that local miners will have to pay double the price for electricity drawn from the regular energy system as a requirement. They may also incur additional fees if they mine during peak hours.

Given the lack of official regulation, crypto mining operations across the nation must register with the new Uzbek National Agency for Prospective Projects. Uzbekistan authorized cryptocurrency trading in 2018, but there is presently just one approved exchange – this is where local crypto miners trade the digital assets they earn.

The new regulatory framework would force cryptocurrency exchanges to conduct know-your-customer (KYC) checks on cryptocurrency dealers and preserve data for five years.

Meanwhile, the new solar incentives will provide enough regulatory leeway to spur growth in the local industry. Indeed, the administration in Tashkent expects that the country’s crypto sector would construct and run its solar panels, relieving strain on the country’s ailing energy infrastructure.

In terms of bitcoin mining, Uzbekistan is currently lagging behind Kazakhstan.

The move to solar…

Read more at www.investing.com

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