Fun

Uzbekistan to Create National Mining Pool, Launch Licensed Exchange

News Feed - 2020-01-16 02:01:23

Uzbekistan to Create National Mining Pool, Launch Licensed Exchange


Establishing a “national mining pool” has been declared a priority in Uzbekistan. Miners who join the pool will enjoy lower electricity rates, announced the country’s agency overseeing the crypto industry. The Central Asian nation is also preparing to launch a licensed cryptocurrency exchange, where miners will be able to sell the coins they have minted.


Also read: Turkey Prepares to Increase Oversight in the Crypto Space Consolidating Crypto Mining Power


The National Agency for Project Management (NAPM), a government body under the President of Uzbekistan, revealed this week its 2020 plans for the regulation of crypto trading and the implementation of blockchain technologies. During a press conference on Monday, the agency stated that the proposed mining pool will help consolidate the capacities of domestic and foreign miners at the national level.



The main motivation behind the agency’s decision is to ensure the economic efficiency and increase the transparency and security of cryptocurrency mining in the country, the local news outlet Spot reported. NAPM thinks this will improve energy efficiency in this sector as well and make the former Soviet republic look more attractive to foreign investors.


The establishment of a national mining pool is also part of a series of measures by NAPM to take crypto miners out of the shadow economy. Another one of these will be the launch of the country’s first licensed digital asset exchange next week, on which mining companies will be able to sell the digital coins they receive for the processing of crypto transactions.



Uznex, a platform operated by the South Korean Kobea Group, is scheduled to open officially on Monday, Jan. 20. Its website, which is currently online in beta, shows seven trading pairs with bitcoin core (BTC) and the stablecoin tether (USDT), including BCH/BTC and BCH/USDT. The exchange is based in the capital, Tashkent.


The Republic of Uzbekistan legalized cryptocurrency trading and introduced licensing for crypto exchanges with a special decree signed by President Shavkat Mirziyoyev in September 2018. Another decree issued by the presidency in July of that year prepared the legal ground for crypto-related activities in general and the implementation of blockchain technologies. Pool Participants to Get Better Electricity Rates


Despite these initial positive developments, Uzbek authorities have also taken some steps that could negatively influence the country’s nascent crypto industry. Recently adopted amendments to the regulatory regime limit the opportunities for private individuals to use cryptocurrency, as news.Bitcoin.com reported. According to local media, an order issued by NAPM in early December effectively bans citizens of Uzbekistan from buying and trading cryptos. They will only be allowed to sell coins on the country’s licensed exchanges.


Domestic mining farms were also targeted. Another government decree set higher rates for the electricity they consume. Under the new regulations, miners would have to pay three times the regular price for the energy they need. Members of the industry warned that any raise beyond 1.7 times the regular tariff would practically reduce profitability to zero, given the current cryptocurrency prices. The continuing market recovery improved the profitability of bitcoin mining but the price of electricity remains a major factor for this business, too.



Things should change for the better, however, with the mining pool the government wants to create. The agency for project management expressed its negative stance on the government’s decision to increase electricity rates for miners. In order to remedy the unfavorable situation, the agency plans to allow members of the national mining pool to pay at standard rates. “I think this will be one of the main measures to encourage participation in this pool,” said NAPM deputy director Vyacheslav Pak. At the same time, nonparticipating companies will be charged the high price.


The regulator is now stepping up efforts to establish the new mining pool and it’s already preparing, together with other agencies, a draft decree for Uzbekistan’s president which will be released for public discussion in the coming days. “We must do this in time so that investors who are ready to come here do not scatter to neighboring countries,” Vyacheslav Pak emphasized.


Do you think Uzbekistan will attract crypto miners to its national mining pool? Share your expectations in the comments section below.


Images courtesy of Shutterstock, Uznex.


Did you know you can earnBTCandBCHthroughBitcoin Mining? If you already own hardware, connect it to our powerful Bitcoin mining pool. If not, you can easily get started through one of our flexible Bitcoin cloud mining contracts. Share this story: Tags in this story crypto, crypto exchange, crypto mining, Cryptocurrencies, Electricity, Exchanges, launch, mining, mining pool, NAPM, Plans, pool, priorities, rates, Tashkent, trading, Uzbekistan, Uznex Related Mining Report Highlights China"s ASIC Manufacturing Improvements and Dominance MINING | Jamie Redman


During the first month of the new year, the research firm Tokeninsight published its “Mining Industry Annual Research Report,” which… read more. Mining Giant Canaan Faces Stiff Competition After IPO Shares Slump MINING | Jamie Redman


On November 21, the Chinese mining rig manufacturer Canaan Inc. launched its initial public offering (IPO) sale of $90 million… read more. Lubomir Tassev


Lubomir Tassev is a journalist from tech-savvy Bulgaria. Quoting Hitchens, Lubomir says: ”Being a writer is what I am, rather than what I do.“ International politics and economics are two other sources of inspiration. Please enable JavaScript to view the comments powered by Disqus.

News Feed

Quantum-Resistant Token, Crown Sovereign (CSOV) Will Be Listed on Bitcoin.com Exchange
Quantum-Resistant Token, Crown Sovereign (CSOV) Will Be Listed on Bitcoin.com Exchange press release PRESS RELEASE. Crown Sterling’s Crown Sovereign token (
Ethereum Foundation email hacked to promote Lido staking phishing scam
Christopher Roark2 hours agoEthereum Foundation email hacked to promote Lido staking phishing scamA hacker broke into the Ethereum Foundation’s email server and sent scam emails to 35,794 people, recording 81 subscribe
Montenegro Appellate Court upholds Do Kwon extradition to South Korea
Vince Quill6 hours agoMontenegro Appellate Court upholds Do Kwon extradition to South KoreaSince 2023, the decision to send the Terraform co-founder to South Korea or the United States has been contested in Montenegrin c
Bitcoin Mining Operations Continue to Expand Amid the Crypto Winter, While Converting ‘Wasted Gas to Energy at Scale’
Bitcoin Mining Operations Continue to Expand Amid the Crypto Winter, While Converting "Wasted Gas to Energy at Scale" The bitcoin mining industry continues to expand as companies a
FTX Execs Gave $70 Million to Both Democrats and Republicans Heading Into the 2022 US Midterms
FTX Execs Gave $70 Million to Both Democrats and Republicans Heading Into the 2022 US Midterms After the collapse of FTX, a number of journalists reported on the fact that FTX exec
These Are the Most Profitable Proof-of-Work Algorithms Since Ethereum Moved to Proof-of-Stake
These Are the Most Profitable Proof-of-Work Algorithms Since Ethereum Moved to Proof-of-Stake Since the transition from proof-of-work (PoW) to proof-of-stake (PoS), ethereum cannot
Ethereum Validator Count Surpasses 500,000 Ahead of Upcoming Shanghai Hard Fork
Ethereum Validator Count Surpasses 500,000 Ahead of Upcoming Shanghai Hard Fork According to statistics, the number of Ethereum network validators on the Beacon chain exceeded 500,
David Attlee53 minutes agoBrazil: Senate Commission will analyze the AI bill in 120 daysThe bill, aimed at regulating the artificial intelligence in the country, was introduced to the Senate in December 2022.298 Total vi
Blackrock CEO Agrees With JPMorgan Boss Jamie Dimon About Bitcoin, Sees ‘Huge Role for Digitized Currency’
Blackrock CEO Agrees With JPMorgan Boss Jamie Dimon About Bitcoin, Sees "Huge Role for Digitized Currency" The chief executive officer of the world’s largest asset manager,
Welcome to the United Kingdom — Please hand over your crypto
Syed Rahman6 hours agoWelcome to the United Kingdom — Please hand over your cryptoAn April change to United Kingdom law will allow authorities to treat crypto like other assets by seizing it without accusing suspects o
Exploring the CropBytes Metaverse: A Futuristic Crypto Game With Real Economics and Immersive Graphics
Exploring the CropBytes Metaverse: A Futuristic Crypto Game With Real Economics and Immersive Graphics On January 20th, CropBytes, the four-year-old metaverse farming game, is laun
Bitcoin should be treated as a commodity, like gold — Cantor Fitzgerald CEO
Josh O"Sullivan17 hours agoBitcoin should be treated as a commodity, like gold — Cantor Fitzgerald CEOCantor Fitzgerald CEO Howard Lutnick advocates for Bitcoin to be classified as a commodity, citing its similarities