Uzbekistan approves solar mining of crypto
The country hopes to release the pressure off its power plants by this move
By Shashank Bhardwaj
A presidential decree published this week in Uzbekistan will now allow enterprises to mine cryptocurrency using solar energy and exempt all crypto operations by domestic and foreign companies from income tax.
Crypto mining is the process by which new bitcoins and other cryptocurrencies generate new coins and validate transactions. It entails massive, decentralised networks of computers all over the world that verify and safeguard blockchains. Computers in the network are rewarded with new coins in exchange for contributing their processing power. Typically, mining requires large amounts of energy and power.
The administration of Tashkent is now also inviting miners to use solar panels to power their farms. In the future, Uzbekistan will also exempt income tax for both foreign and domestic crypto firms. Although no license is required for mining, the company must be registered with the Uzbek National Agency for Perspective Projects, which was recently established. Local miners will be charged twice as much for electricity consumed from the standard grid. They may also be subject to higher fees during peak demand periods.
The Central Asian country has a love-hate relationship with cryptocurrencies. Despite the fact that Uzbekistan legalised cryptocurrency trading in 2018, residents were prohibited from purchasing digital assets in late 2019, although selling them remained legal. The government then eased some limitations about a year ago, allowing Uzbeks to engage in crypto transactions involving crypto assets and tokens in exchange for domestic and foreign currencies. However, Uzbeks are still forbidden from purchasing bitcoin or altcoins under current laws, which do not apply to foreigners.
Neighbouring country Kazakhstan, which, after the United States, became the world's second-largest bitcoin mining centre last year, has also cracked down on mining after such operations stressed the country’s power system, which is dominated by ageing coal power plants.
Shashank is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash
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Jack Dorsey vs. Vladimir Tenev on Bitcoin transaction feesRead More..
Ripple claims 'a very big win' in SEC caseRead More..
Argentinian town to invest in crypto mining to fight inflation, upgrade rail infraRead More..
Pantera Capital closing fundraise for its blockchain fund after raising $1.3 billionRead More..
Homegrown blockchain co Polygon commits to go carbon neutral this yearRead More..
NBA registers four NFT trademarksRead More..
US crypto expert jailed 63 months for helping North KoreaRead More..
Fortnite developer Epic Games raises $2 billion to build for the metaverseRead More..
Indian companies storm the metaverse and NFT spaceRead More..
Coinbase is producing a movie trilogy on Bored Ape NFTsRead More..
Multiple Indian Twitter accounts hacked, NFT content postedRead More..
German police shut down $1.3 billion illegal darknet firmRead More..
Meta tests sale of virtual goods in metaverseRead More..
Bitcoin 2022 Conference: Bitcoin Maximalists attack national currenciesRead More..
Binance Gets In-Principle Approval to Operate as Crypto Broker in Abu DhabiRead More..
EU limits Russians' crypto investments to 10k EurosRead More..
Coinbase suspends UPI payments in India three days after launchRead More..
From KFC to Tesla, Dell: Crypto-curious corporations struggle to find right recipeRead More..
In Texas, crypto miners turn to solar powerRead More..
South Africa concludes technical Proof-of-Concept for its CBDC settlement systemRead More..
Terra buys $200 million in AVAX for reservesRead More..
Bitcoin will remain as a standard: Chess world champion Garry KasparovRead More..
Coinbase launches in IndiaRead More..
Meta working on virtual money 'Zuck Bucks': reportRead More..
Germany closes Russian darknet marketplace HydraRead More..
Britain paves way to accept stablecoinRead More..
Crypto industry reels from $600 million hackRead More..
NFT of Nelson Mandela's arrest warrant auctioned for $130,000Read More..
Bank of England calls for tighter regulation of cryptocurrenciesRead More..
ECB's Lagarde 'concerned' about crypto use to dodge Russia sanctionsRead More..
Crypto provides fix for some in crisis-hit AfghanistanRead More..
Bitcoin to the rescue: Cryptocurrencies' role in UkraineRead More..
Digital art in spotlight as Dubai makes crypto hub bidRead More..
G7 looks to thwart cryptoassets use as Russian sanctions dodgeRead More..
Can cryptocurrencies give Russia, others breather from economic sanctions?Read More..
Cryptocurrencies enter Russia-Ukraine conflictRead More..
Russia seeks to regulate cryptocurrenciesRead More..
Donald Trump's NFT collection to laud his own presidencyRead More..