The Republic of Uzbekistan has approved new regulations for issuing licenses for cryptocurrency mining activities.
The National Agency for Advanced Projects (NAAP), an organization primarily responsible for crypto markets oversight, has finally released a new framework on the procedure for registering crypto mining, which the deputy director of NAAP Vyacheslav Pak hinted in an interview, in August.
The regulation clearly states that only legal entities are allowed to carry out crypto mining using electricity produced by a solar photovoltaic station. Miners also have the right to connect to a unified electrical power system, with a separate electric energy meter.
“The organization of mining activities and service providers is possible only after receiving a permitting document and a license in the prescribed manner.”
The agency has further asked citizens to comply with the law and refrain from performing any unregistered crypto mining activities. It also warned users not to deal in any services offered by unlicensed service providers in Uzbekistan.
The Framework – This is What You Need to Know
The agency further noted that miners can sell crypto-assets obtained during mining through licensed crypto exchanges permitted to operate as service providers in the country.
According to the regulation document, crypto miners are issued permission to operate by the NAAP and “the permit is issued for a period of five years.” Miners should also report information on operations conducted at the request of the authorized body.
NAAP clearly states that miners should ensure the technical correctness of the electrical supply system of the premises where the site is located, taking into account safety, sanity and technical safety.
Uzbekistan’s crypto watchdog has so far granted licenses to one crypto exchange, one crypto depositary and ten other crypto trading platforms. The agency has been in talks with global exchanges including Binance, Huobi and Bybit about possibly setting up operations in Uzbekistan, Pak said in August.
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