Uzbek regulator explains the licensing process for cryptocurrency mining

The National Agency for Prospective Projects of Uzbekistan published a regulation detailing the process for issuing licenses to engage in cryptocurrency mining.

According to the document, mining must be carried out solely by a legal entity.

Licenses are issued for five years. To obtain one, companies must meet the following:

• Use of electricity generated by a solar photovoltaic plant, except as provided by law;
• There must be a separate room for equipment installation;
• Compliance with requirements in the field of cryptoasset turnover;
• Mining must be carried out only at the address specified in registration;
• Ensuring the technical reliability of the power supply system;
• Having a device to measure energy consumption;
• Timely and full payment of taxes and bills.

The regulation also prohibits:

• Surreptitious mining;
• Mining of anonymous cryptocurrencies;
• Activities without a license;
• Transfer of the license to another legal entity.

Companies that have received approval must provide information about their operations upon request by the competent authority in electronic form.

Mined assets may be traded only on Uzbekistan-licensed crypto exchanges.

In total, the National Agency for Prospective Projects identified 16 steps for legal entities and the competent authorities in the licensing process—from preparing the relevant documents to regulator’s approval of the application.

On 6 September, the Uzbek president Shavkat Mirziyoyev signed amendments to the legislation, including those concerning mining.

Earlier in June, the agency issued the first license for the operation of Lockton Hub’s cryptodepository services.

In August the regulator approved the operation of the crypto store C-BASE. In the same month, Ravnaq Bank and Kapital Bank allowed to participate in the digital sandbox with the ability to issue cryptocurrency cards.