Uzbekistan Makes Solar Bitcoin Mining Legal; No Taxes

According to recent reports, the government of Uzbekistan would enable local enterprises to mine cryptoassets using solar power. It will also exclude all cryptocurrency miners from paying income taxes. According to a presidential decree issued this week, the Central Asian state will also exclude any crypto activities conducted by domestic and foreign enterprises from income tax.

Moving ahead, the Central Asian country will also exempt taxable income for both international and domestic crypto firms. Local miners will have to pay nearly twice price for power drawn from the regular energy system under the requirement. They may potentially face extra fees for use during peak demand periods.

Uzbekistan Has Not Always Been Crypto Friendly

Uzbekistan hasn’t been known to be crypto-friendly place. Authorities prevented citizens from acquiring crypto two years ago, but according to Reuters, the administration has now shifted its attention to crypto mining. In 2018, Uzbekistan authorized cryptocurrency trading, but only on a local cryptocurrency exchange. The country in Central Asia has also established a number of renewable energy projects, primarily solar and wind power facilities.

New proposal in January 2020 would’ve created a nationwide crypto mining network, with member miners receiving reduced power. But, it seems that the new solar incentives outweigh those aims, with the goal of providing ample regulatory leeway to spur development of the local sector.

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Jai Hamid