May 4, 2022
By Murtuza Merchant
Central Asian nation Uzbekistan has given a nod to allow companies to mine cryptocurrencies using solar energy.
The country will also exempt all crypto operations by domestic and foreign companies from income tax, a presidential decree published this week said.
The mining companies can also be connected to the power grid if they are willing to pay double the regular price. However, during peak consumption hours extra surcharges can be levied, as per the decree.
The document further noted that no license is required for mining but the company must be registered by a newly formed Uzbek National Agency for Perspective Projects.
Mining is a process that verifies and adds new transactions to the blockchain for a cryptocurrency that uses the Proof-of-Work (PoW) method. The process of mining uses a huge amount of electricity and has been time and again criticized for the same.
Uzbekistan has signed the decree to further develop digital technologies, create favorable conditions for entrepreneurship and improve the legislation in the cryptocurrency sphere.
The Central Asian nation legalized cryptocurrency trading in 2018 but only on a domestic crypto exchange. It has also launched several renewable energy projects, mostly solar and wind power plants.
About the author
Murtuza Merchant is a senior journalist and an avid follower of blockchain and cryptocurrencies.