The National Agency for Advanced Projects (NAAP) in the Republic of Uzbekistan has recently introduced new guidelines for issuing licenses for cryptocurrency mining activities. The agency, responsible for overseeing the crypto market, has released a comprehensive framework that outlines the registration process for crypto miners.
New Licensing Framework for Crypto Mining
In an interview with Vyacheslav Pak, the deputy director of NAAP, it was revealed that the organization is dedicated to ensuring the proper regulation of crypto mining in the country. As per the new regulations, only legal entities are permitted to engage in cryptocurrency mining. Additionally, these entities must utilize electricity generated by a solar photovoltaic station for their mining operations. They also have the option to connect to a unified electrical power system, utilizing a separate electric energy meter.
“The regulation clearly states that only legal entities are allowed to carry out crypto mining using electricity produced by a solar photovoltaic station.” – Vyacheslav Pak
The NAAP emphasizes the importance of complying with the law regarding crypto mining and cautions against any unregistered mining activities. The agency strongly advises individuals not to avail services from unlicensed service providers within the country as well.
Sale of Crypto-Assets and Reporting Obligations
According to the regulatory document, miners who obtain crypto-assets during mining are permitted to sell them through licensed cryptocurrency exchanges authorized to operate as service providers in Uzbekistan. The NAAP issues permission to crypto miners for a period of five years. Additionally, miners are obligated to provide information on their operations upon request from the authorized body.
“The permit is issued for a period of five years.” – NAAP regulation document
The NAAP emphasizes the need for miners to ensure the technical correctness of the electrical supply system at their mining site. This includes considerations for safety, sanitation, and technical standards.
Licensing Progress and Potential Global Exchanges
Currently, the crypto watchdog in Uzbekistan has granted licenses to one crypto exchange, one crypto depositary, and ten other crypto trading platforms. In addition, the agency has been in talks with prominent global exchanges like Binance, Huobi, and Bybit regarding the possibility of setting up operations in Uzbekistan.
“The agency has been in talks with global exchanges including Binance, Huobi and Bybit about possibly setting up operations in Uzbekistan.” – Vyacheslav Pak
