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Uzbekistan makes crypto mining tax free if powered by solar energy

Uzbekistan has authorised and made tax-free cryptocurrency mining — but only if it is powered by the sun.

On Monday, the president signed an executive order allowing both foreign and domestic cryptocurrency mining as long as the mines have their own solar energy facility. According to the government, companies would also be free from paying income tax.
According to the new regulations, miners that use grid power must pay twice as much, and surcharges will be imposed during peak demand periods. The Uzbek National Agency for Prospective Projects will require new miners to register.
Mining is the process by which a miner is awarded new “coins” of a cryptocurrency after validating transactions, collecting those transactions and ordering them into a new block, adding that block to the public ledger, and broadcasting that block to the cryptocurrency node network. Bitcoin mining, on the other hand, is an energy-intensive procedure that necessitates a lot of power.

The Deputy Prime Minister’s belief in solar energy:

“We see a lot of potential in solar energy, and we’re going to encourage it.” “It’s not just stylish, but it also makes financial sense for us,” the country’s deputy prime minister, Sardor Umurzakov, explained.
The facility is the country’s first of 19 planned renewable energy projects, as well as the first of four solar projects.
In contrast, Kazakhstan, Uzbekistan’s northern neighbour, still gets most of its electricity from coal. It initially outlawed cryptocurrency mining because it put too much load on the grid, but subsequently changed its mind and began taxing miners more severely than before.
Seems like Uzbekistan is all set to go green.

Read more: Tesla, Block, and Blockstream team up for solar bitcoin mining

Kunal Krishan
Kunal Krishan
Kunal is an investment space writer who firmly believes investment is something which should not be a choice but a part of everyone's life.
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