Recently, an official order was passed by Uzbekistan’s President, Shavkat Mirziyoyev, as he regulates crypto mining and trading. The order defines key terms like crypto assets, mining, and exchange. But most importantly, it also states the main regulatory body for cryptocurrencies. Let’s see if the order was positive for the industry or not.
The new order that regulates crypto mining and trading
Uzbekistan is keeping a positive approach toward cryptocurrencies. It states that its goal is to develop digital tech, improve legislation and create favorable conditions for entrepreneurship. The new order signed by the president expands the regulatory framework that was already active in the country. It states that the National Agency for Perspective Projects (previously known as National Agency for Project Management) will become the crypto regulator in the country. The agency will fall directly under the president.
NAPP has been asked to protect the right of investors in the crypto economy. They are also asked to prevent money laundering, terrorism financing, and other criminal activities with crypto. The order also states that crypto trading will be allowed from Jan 1, 2023. At the same time, the exchanges, mining companies, and crypto businesses that want to operate in the country need to obtain a license.
Since November 2021, Uzbekistan’s citizens have only been allowed to sell crypto for fiat on the registered exchanges in the country. This happened after the government banned the purchasing of crypto. So, in that sense, the order is very positive as it is going to reverse the same starting in 2023.
Miners will pay higher prices for electricity
Uzbekistan’s government will give mining companies licenses to operate in the country. However, they will be charged higher prices for electricity during the peak hours of consumption. So, mining will become costlier in Uzbekistan. Now, it will depend on the premium charged to decide whether the industry will stay viable in the country or not. Companies that do not have licenses are prohibited from operating, and it’s not clear what the consequences will be if they are caught.
What are your thoughts on the new order of Uzbekistan’s President as he regulates crypto mining and trading? And do you think it will revive the crypto industry in the country? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.