Cryptocurrency miners will pay three times the price of electricity

The Government of the Republic of Uzbekistan has ordered a 300% increase in electricity tariffs for cryptocurrency miners.

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1 Uzbekistan’s approach to crypto and blockchain

2 Mining regulation in other countries

2.1 Related posts:

According to an announcement dated September 27, the Cabinet of Ministers of the Republic of Uzbekistan has decreed that cryptocurrency miners have to pay three times the existing electricity tariffs.

The provision follows a decree of 22 August 2019 of President Shavkat Mirziyoyev entitled “On accelerated measures to improve the energy efficiency of the economic sectors and the social sphere, the implementation of energy saving technologies and the development of renewable energy sources” and the motivation to continue using rational of electricity by consumers.

Uzbekistan’s approach to crypto and blockchain

In September last year, Mirziyoyev ordered the establishment of a development fund for the state blockchain called “Digital Trust”. The primary objective of the fund is to integrate the blockchain into various government projects, including in the field of health, education and cultural areas. The organization will be responsible for international investments in the Uzbek digital economy.

At the beginning of the same month, a decree entered into force that legalized the trading of cryptocurrencies – taxes were eliminated – and mining came into force. According to the law, foreign businessmen can only trade cryptocurrencies in Uzbekistan by setting up a branch in the country.

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The law also specifies a minimum capital requirement of approximately $ 710,000 to set up a crypto exchange. Moreover, crypto traders will not be required to comply with the regulations of the Uzbek stock market and will be exempted from the obligation to pay taxes on trading income.

Mining regulation in other countries

In June, the Iranian government announced it would reduce power for crypto mining companies until new energy prices were approved. It seems that the Ministry of Energy of Iran has revealed that the country registered a 7% increase in electricity consumption in a monthly period ending on June 21, 2019. The ministry believes that the surplus was caused by the increasing number of activities cryptographic mines in the country.