• Uzbekistan has introduced a tax-free and solar-powered solution that allows crypto miners to mine cryptocurrency.
• Companies will pay twice as much to mine regular energy.
• Kazakhstan strengthens its control over the cryptocurrency industry through strict regulations.

Uzbekistan is trying to get cryptocurrency miners to leave coal. This has been done by an executive directive. According to the government, charging miners premium amounts for electricity from the main grid will accelerate their transition towards solar power.

The Central Asian nation will also waive income taxes for domestic and international crypto companies. Uzbekistan is making major changes to boost growth of its crypto mining sector despite severe power outages earlier in the year.

According to sources, local miners may have to pay twice the cost of electricity from the regular power system. If they mine in peak hours, additional fees may apply.

Due to lack of regulations, all crypto miners must register at the Uzbek National Agency for Prospective Projects. Uzbekistan authorized cryptocurrency trading in 2018, but there is presently just one approved exchange – this is where local crypto miners trade the digital assets they earn.

This new regulation framework will require that cryptocurrency exchanges perform know-your customer (KYC), background checks on crypto dealers, and retain data for at least five years.

The new incentives for solar energy will allow enough regulatory flexibility to encourage local growth. Indeed, the administration in Tashkent expects that the country’s crypto sector would construct and run its solar panels, relieving strain on the country’s ailing energy infrastructure.

Uzbekistan is currently behind Kazakhstan when it comes to bitcoin mining.

The move to solar comes in response to power outages in Kazakhstan and neighboring Kyrgyzstan earlier this year, following a mass exodus of bitcoin miners from China to Kazakhstan following Beijing’s blanket ban in June.

Kazakhstan’s energy system, which also serves Uzbekistan and Kyrgzstan’s business and residential sectors, was severely harmed. Officials blamed the disruption in supply of heat and electricity on crypto miners. Kazakhstan is now requiring cryptocurrency miners submit quarterly reports to modify its mining rules.

The registration and reporting requirements for those minting digital currencies have been extended by an order issued by Kazakhstan’s minister of digital development, Bagdat Musin. The paper states that individuals, legal companies and entrepreneurs who intend to mine cryptocurrency should inform the authorities no later than 30 days prior to starting operations. Businesses and those who offer services must also inform officials.

Cryptocurrency miners are required to submit information like their company’s name, registration number, contact information, bank account information, and IP addresses. They must also detail their mining facilities’ energy requirements, projected investments, and staff numbers.

Kazakhstan’s government has updated the registration criteria for crypto mining individuals and businesses. This is a move to crack down on the mining industry that has led to power outages due in part to an increase of miners.

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