Central Asian nation, Uzbekistan has now decided to allow companies to mine cryptocurrencies using solar energy. Further, the country will exempt all crypto operations by domestic and foreign companies from their income tax.
Uzbekistan embraced the cryptocurrency market in 2018 by legalizing trading on this platform, however, only through a domestic crypto exchange. Also, the country has unveiled a series of renewable energy projects, mostly solar and wind power plants.
As per a Reuters report, the Tashkent government wants miners to power their farms by installing their own solar panels.
Further, no license will be required for minimising but the companies are needed to register with a newly formed Uzbek National Agency for Perspective Projects.
On the other hand, the country allows mining companies to connect to the power grid if they pay double the regular price. However, in the peak consumption periods, Uzbekistan will levy extra surcharges on the operations.
The report explained that some cryptocurrencies, including bitcoin, are created by a process called proof of work which requires computers to “mine” the currency by solving complex puzzles. Powering those computers involves large amounts of electricity.
Notably, Uzbekistan’s neighbor Kazakhstan has cracked down on mining operations after they strained its power grid dominated by aging coal power plants.
Kazakhstan has become the world’s second-largest centre for bitcoin mining after the United States last year. (With Inputs of Agency)