Companies In Uzbekistan Can Now Mine Bitcoin Using Solar Energy.

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 is not known for being crypto-friendly. 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 regulations nearly a year ago. Uzbeks would be able to perform “all types of crypto operations involving crypto assets and tokens in exchange for both domestic and foreign currency,” according to the government.

However, Uzbeks are still forbidden from purchasing bitcoin or altcoins under current laws, which do not apply to foreigners.

According to a recent report by Reuters, the government has now turned its attention 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 a particular permission to operate, but they must register with the newly founded Uzbek National Agency for Perspective Projects.

The largest cryptocurrency exchange, Binance, has taken notice of the Central Asian nation’s growing crypto sector in recent years. The company 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:

“In Ukraine, Kazakhstan, and Uzbekistan, they are more loyal to cryptocurrencies and are taking steps towards 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 (35.4%) in terms of worldwide hash rate, with around 18%.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Patrick

CoinCu News