Uzbekistan has recently declared “national mining pool” as a priority in the country. On Thursday, a government body, the National Agency for Project Management (NAPM), which comes under Uzbekistan’s president, Shavkat Mirziyoyev, announced its 2020 plans to regulate crypto trading and the blockchain technologies implementation. On Monday, during a press conference, NAPM stated that the suggested mining pool would strengthen the capabilities of both domestic and foreign miners at the national level. According to the declaration by the country’s agency, miners who would enter the pool would benefit from cheaper electricity rates. The country has also planned to start a licensed cryptocurrency exchange, which would allow miners to sell the coins they have created.
Combining The Nation With Crypto Mining Power
As reported by the local news outlet Spot, the primary motivation behind this decision is to boost the transparency, security and economic efficiency through cryptocurrency mining in the nation. NAPM has a strong belief that this would increase energy efficiency in this sector and make the previous Soviet republic look more appealing to foreign investors.
The national mining pool’s establishment is a portion of measures taken by NAPM to pull crypto miners out of the illicit economy. Another measure would be to start the first-ever authorised digital asset exchange the following week. This will enable crypto-mining companies to sell the virtual coins they get for crypto transactions processing.
Pool Participants to Benefit From Inexpensive Electricity Rates
Apart from this decision, the nation’s authorities have taken some steps that could negatively impact the country’s growing crypto industry. The amendments adopted recently by the regulatory regime would restrict the opportunities for private individuals to make use of cryptocurrency. According to a local report, an order published by NAPM in early December bans citizens of Uzbekistan while trading with cryptocurrencies. The citizen would be allowed to trade the cryptos on the nation’s licensed exchanges.
The decree has also targeted domestic mining farms. According to the new regulations, miners would have to spend three times the normal price for their energy requirement. The industrial members have warned that any increase beyond 1.7 times the usual tariff would efficiently decrease profitability to zero, which would increase the cryptocurrency prices. The ongoing market recovery increased the profitability of Bitcoin mining, but the electricity cost remains a common factor for this business.