Even though cryptocurrency is gaining in popularity across the globe, there are still some issues within the industry that are not fully settled and one of these is the use of electricity for crypto mining. This is because crypto mining is a very electricity-intensive task and requires large amounts of resources to complete. This has led to several individuals stealing electricity from various institutions in order to mine cryptocurrency or making use of electricity at subsidized rates in order to mine cryptocurrency and this has seen crypto miners clashing with various governments over this matter.
Unfortunately for miners in Uzbekistan, it has been reported on September 27, 2019 that the ministers in the cabinet of the republic of Uzbekistan have declared that miners must pay three times the usual tariff for electricity usage within the country.
While this development was just announced, it follows in a decree that was made on August 22, 2019 by the president which is called “On Accelerated Measures to Improve Energy Efficiency of Economic Sectors and the Social Sphere, Implement Energy Saving Technologies and Develop Renewable Energy Sources” and seeks to promote the use of electricity in a responsible manner by citizens and the placing of heavy taxes on crypto mining is apparently step in that direction.
Despite this announcement of increased tariffs, the country still has generally been very favorable towards the industry as in September 2018, the president established an initiative that seeks to implement blockchain application into several parts of public life such as healthcare, education and so on and also seeks to bring in investments into the country.
Crypto mining was also made legal within Uzbekiztan and this led to a boom in those who wanted to mine crypto and there was also a degree that foreign nationals can only trade in cryptocurrency in the country by creating a subsidiary of their own companies. Standards were sent for the creation of crypto exchanges as well as a minimum capital investment towards that endeavour and crypto exchanges were not fall on the Uzbekistan stock market laws.