Home CryptoCurrency News National Agency of Prospective Projects (NAPP) In Uzbekistan Green Lights BTC Miners
CryptoCurrency News - June 30, 2022

National Agency of Prospective Projects (NAPP) In Uzbekistan Green Lights BTC Miners

Cryptocurrency and BTC mining have been one of challenging issues to handle in regulations by different jurisdictions. Many have enacted various laws to control some of the environmental aftermaths of the process. Some government authorities have even banned some primary crypto mining within their province. China remains one of the notable countries that cracked down on Bitcoin mining in 2021.

In a recent report, Usbekistan has released new directives on cryptocurrency mining. The National Agency of Prospective Projects (NAPP) publicized its requirements for crypto miners. According to the agencies, using solar energy is essential for any mining firm.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

With the restructuring in April 2022 within Uzbekistan, NAPP now has the exclusive crypto regulatory authority in the country. However, its operation is tied to maintaining a unique period of its regulatory performance.

NAPP Demands Registration And Certificate For Crypto Mining

The documentation on NAPP’s demands was June 24, with July 9 as the date for full compliance. The details on the document demand that all crypto and BTC mining firms comply with the guideline for full registration.

National Agency of Prospective Projects (NAPP) In Uzbekistan Green Lights BTC Miners
Bitcoin price falls below the $21k mark | BTC/USD chart from TradingView.com

Also, the document’s second part demands that the mining companies use a solar photovoltaic power plant as the source of operational energy.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?

Get 110 USDT Futures Bonus for FREE!

The agency stated that the mining firm or operator must also be the power plant’s owner. However, Uzbekistan banned mining anonymous cryptocurrencies in the country.

Related Reading | Three Arrows Capital In Deep Trouble As Court Orders For Its Liquidation

In other regulatory compliance, mining firms must pay the Uzbekistan government’s set tariffs on energy consumption. However, they would enjoy free taxation on income from mining activities. Also, only registered crypto exchanges could indulge in trading activities with mined cryptocurrencies in the country.

Besides the physical acquisition of the power source for the mining, there are some included registrations. Operators must complete registration and get a certificate from the national registry of the crypto mining firms.

The certificate has just one year of validity, after which there must be a renewal. It takes 20 days to procure the certificate once the miner has submitted all documents for the approval of the licensing agency.

BTC Mining Activities And Effects

The impact of some of the anti-crypto laws on mining has been devastating. For instance, Bitcoin passed through one of its bearish trends due to the Chinese crackdown. As a result, many mining companies had to close down business in such countries to seek a suitable relocation. The overall development led to a drop in the economic stance of some firms.

Token mining remains a prominent consensus mechanism for many cryptocurrency protocols. It provides a means for validating transactions and maintaining security and stability in the network. Also, adding new blocks within a blockchain gives rise to the minting of new tokens.

However, BTC mining offers its share of negative shortfalls. It consumes lots of electrical energy, posing a significant challenge in energy management.

Related Reading | Huobi Crypto Expected To Cut Down 30% Of Its Staff Due To Drop In Revenue

Also, most miners use fossil fuels in their operations, leading to carbon emissions and environmental pollution. These have been major concerns in most countries with BTC mining. So, more BTC mining laws are falling out in different nations.

Featured image by Pixabay and chart from TradingView.com


Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

Not The 2018 Bear Market, Bitcoin Price Could Hit $20,000 In December

The Bitcoin price rebounded off the low of its current range and retraced its weekend loss…