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    Uzbekistan

    Uzbekistan's Ministry of Justice registers rules for mining activity permits

    Uzbekistan's Ministry of Justice registers rules for mining activity permits

    The Ministry of Justice has officially registered a new regulation on procedures for granting mining activity permits.

    An employee works on bitcoin mining computers at Bitminer factory in Florence, Italy, April 9, 2018.
    Source: Reuters

    This regulation outlines the specific steps and criteria for obtaining permits for mining operations and conducting related activities within Uzbekistan. Key provisions of this regulation include:

    1. Mining operations in Uzbekistan are permitted only when using electricity generated by legitimate entities through solar photovoltaic systems. Exceptions may apply as defined by existing legislation.

    2. Miners can connect to the national electricity grid in compliance with legal requirements and are required to install equipment to monitor electricity consumption.

    3. Miners must conduct their activities solely at the address provided during registration, adhering to fire safety and sanitary regulations.

    A small toy figure and representations of the virtual currency Bitcoin stand on a motherboard in this picture illustration taken May 20, 2021.
    Source: Reuters

        4. Prohibited activities within Uzbekistan's territory include secretive mining, anonymous crypto-asset mining, mining at an unregistered address, and mining without the necessary permit.

        5. Miners are authorized to sell crypto-assets obtained through mining on licensed crypto exchanges operating as crypto-asset service providers in Uzbekistan.

        6. An expert commission, appointed by the head of the National Agency for Prospective Projects (the authorized body), will review permit applications within 15 days and provide recommendations for approval or rejection. Based on the commission's conclusion, the authorized body will make a final decision to issue or deny a permit within 5 days.

        7. Permits will be issued electronically, featuring a QR code (matrix barcode), typically within one day of the authorized body's decision. The application and permit issuance process is free of charge, and permits are valid for five years.

    A scene from the illegal mining farm in Bukhara.
    Source: Ministry of Internal Affairs

    Recent reports have highlighted the discovery of an illegal mining operation in Bukhara, which resulted in a UZS 2.6bn (approximately $217,646) loss to the state. Arrests were made in Nurafshan involving individuals installing crypto-asset mining devices, and in Andijan, an individual responsible for organizing an illegal mining farm was apprehended. In September 2022, the Ministry of Justice registered a regulation outlining fee determination, payment procedures, and distribution mechanisms for activities related to crypto-asset circulation in Uzbekistan.

     

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    04.10.2023, 15:58   Comments (0)   904
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    On this topic

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