According to reports, the Uzbek government will allow local firms to mine digital assets using solar energy. It will also exempt all crypto miners from paying income tax.
Uzbekistan calls for the use of solar energy
The Central Asian country is not considered a crypto-friendly destination. In late 2019, authorities banned residents from buying digital assets while selling them remained legal.
Almost a year ago, the former Soviet republic considered a U-turn and lifting some restrictions. The government intended to allow Uzbeks to conduct “all kinds of crypto operations using crypto assets and tokens in exchange for domestic and foreign currency.”
However, under current legislation, Uzbeks are still prohibited from Bitcoin or to buy altcoins, while the legislation does not apply to foreigners.
Recent coverage by Reuters revealed that the government has now turned its focus to the digital asset mining industry. Authorities have suggested that Uzbek miners should start powering their supercomputers with solar cells. Those who do so pay less for electricity, while grid-connected businesses pay double the regular rate.
Local crypto miners do not need to get a special license to operate, but they should be registered with the newly established Uzbek National Agency for Perspective Projects.
Binance finds Uzbekistan attractive
The growth of the crypto sector in the Central Asian nation in recent years has attracted the attention of the largest cryptocurrency exchange – Binance. Earlier this year, the company announced that it would like to expand its services to Russia and its neighboring countries, as Uzbekistan was one of them.
Gleb Kostarev – Eastern European Director of Binance spoke about the possible expansion. He explained that the goal of the platform is to gain regulatory approval wherever regulations allow. Kostarev added that the people of Uzbekistan are “loyal” to the crypto sector and hence the trading floor could target it:
“They are in Ukraine, Kazakhstan and Uzbekistan cryptocurrencies more loyal to and taking steps towards liberalization rather than restriction.”
It’s worth noting that Uzbekistan’s northern neighbor – Kazakhstan – is a household name in the digital asset industry and mining in particular. It accounts for over 18% of the global hash rate, surpassed only by the US (35.4%).
Source: Crypto News Deutsch