Uzbekistan has time and again proved that it is a crypto-friendly country by legalizing cryptocurrency exchanges and funding several blockchain and cryptocurrency-related projects. However, the country’s recent update has taken a toll on cryptocurrency miners.
The Cabinet of Ministers of the Republic of Uzbekistan shared an announcement citing the hike in electricity tariffs levied on cryptocurrency miners. Off late, several countries have been expressing their concerns over the electricity consumption of crypto miners. Back in June, the government of Iran asserted that they would stop power supply to mining operations. The Chinese government has also expressed that it would consider terminating crypto mining in the country.
As per the announcement, cryptocurrency miners of Uzbekistan would be subjected to a 3-fold increase on existing electricity tariffs. The announcement follows a decree from the President of the country, Shavkat Mirziyoyev on 22 August 2019.
The new surge in tariffs comes as a part of the President’s motive to encourage efficient and rational use of electricity, called “On Accelerated Measures to Improve Energy Efficiency of Economic Sectors and the Social Sphere, Implement Energy Saving Technologies and Develop Renewable Energy Sources.”
Last September, Uzbekistan government legalized cryptocurrency trading in the country. However, in order to function in the country crypto exchanges would be subjected to regulations and would also have to seek licensing for the same.
Furthermore, President Mirziyoyev also initiated a state blockchain development fund called, Digital Trust in order to help accelerate blockchain related projects in sectors such as education and healthcare.