Uzbekistan will now allow companies to mine cryptocurrencies using solar energy and will exempt those crypto operations from domestic and foreign companies from income tax, according to a report by Reuters.
Source: Guardian News/Youtube
Uzbekistan first legalized cryptocurrency trading in 2018 but only for domestic crypto exchanges. The neighboring country, Kazakhstan, became the second-largest center for bitcoin mining last year and is also restricting mining after operations strained the power grid that was dominated by old coal power plants.
The Tashkent government wants crypto miners to power the farms by installing solar panels. Mining companies can use the power grid if they pay double the regular price, but during peak consumption, extra surcharges can be levied, according to a presidential decree published this week. The document states that although no license will be required for mining, the company needs to register with the Uzbek National Agency for Perspective Projects.
According to a Reuters article, some crypto companies, like bitcoin, are made through a process called proof of work, which requires computers to “mine” the currency through complex puzzles. However, the downside of this is that powering these computers takes a significant amount of electricity and energy.
Read more about the environmental impacts of bitcoin and other cryptocurrencies on One Green Planet.
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