According to a presidential decree published this week, Uzbekistan, a country in Central Asia, will permit the companies to mine cryptocurrencies using solar energy. To promote the use of renewable energy, these companies, whether domestic or foreign, will be further exempted from their income tax on all crypto operations, so reports NDTV.
Mining of cryptocurrency, as such is an energy guzzling process. The annual consumption of energy utilized for mining of Bitcoin exceeds the total energy consumed by a small nation. Bitcoin, today is the most popular crypto currency and it works on proof of work (pow) protocol. A large number of computers work together in order to mine a new set of Bitcoins. These computers consume enormous amount of electrical energy.
The companies will not require any license to indulge in the process of mining. The only compliance for them is to register themselves with a newly formed Uzbek National Agency for Perspective Projects.
In the capital city of Uzbekistan – Tashkent, government wants miners to install their own solar panels to produce electricity for their farms.
Uzbekistan has also facilitated mining companies by allowing them to connect to the power grid but at double the regular price. Additionally, the government will also levy extra surcharges on the operations in the peak consumption periods.
Although Uzbekistan legalized the cryptocurrency trading in 2018 through a domestic crypto exchange, the legalization of mining will add a new zeal in the crypto community.
