According to a presidential decree, Uzbekistan will allow companies to extract cryptocurrencies using solar energy. It will also exempt all cryptos of domestic and foreign companies from income tax. The Tashkent government wants miners to provide their farms with electricity by installing solar panels. Alternatively, mining companies can connect to the power grid; If they pay double the price. However, according to the ordinance, an additional charge may occur during the peak consumption period.
A license is not essential for mining. However, the firm should register with the newly created National Agency for Prominent Projects of Uzbekistan. Some cryptocurrencies, including Bitcoin, are created through job authentication. This requires computers to “mining” currency by solving complex puzzles. Powering these computers requires a large amount of electricity.
Uzbekistan legalized cryptocurrency trading in 2018; However, only on the internal crypto exchange. The Central Asian country has also launched a series of renewable energy projects, mainly solar and wind power plants.
Neighbouring Kazakhstan, which became the second-largest bitcoin mining center in the world after the United States; Disrupts mining after such operations have strained its power grid; Where obsolete coal-fired power plants dominate.
Council of Europe and Crypto Laundering Clampdown
In a report published on Wednesday, the Moneyval Committee of the Council of Europe called on European states to limit cryptocurrency laundering. Moneyval monitors compliance with dirty money norms in small European countries.
The Committee of Experts joined the standard-setting bodies, such as the Financial Action Task Force, Demanding a stricter approach to virtual assets. Jurisdictions such as the European Union already enforce controversial FATF rules to identify crypto-users and raise funds. Some industries have warned that this could damage privacy and innovation.
According to the report, a rapidly evolving technology that often extends to multiple jurisdictions, Poses a challenge to regulators. Consequently, more robust regulation and oversight are needed, and better coordination between national agencies. A study scheduled for later this year will examine cryptocurrency laundering trends.
There is a suspicion that some small cryptocurrencies are explicitly created for laundering; in addition, more considerable virtual assets see heavy market manipulation; This is the main crime of money laundering.
Moneyval typically oversees smaller European territories not controlled by the Paris-based FATF, including Fintech hubs such as Malta, Gibraltar, and Estonia. Although a monitoring body, its reviews, and recommendations on individual jurisdictions may also affect national legislative reform.