Uzbekistan takes a firm step on the road of forming its own approach to legal regulation and creating favorable conditions for the development of the crypto industry in the country as an integral part of the digital economy.
It should be noted that the head of state puts a special emphasize on the development of the digital economy in the Republic of Uzbekistan.
In particular, the President of the Republic of Uzbekistan Shavkat Mirzyoyev in his Address to the Chambers of the Oliy Majlis (Parliament) of the Republic of Uzbekistan on January 24, 2020 declared 2020 as the "Year of Science, Enlightenment and the Digital Economy Development".
The results of the decisions made by the President of the Republic of Uzbekistan in 2018 aimed at developing crypto-assets turnover have been already being felt. To date the country has formed a legal framework for regulating the activities of crypto-exchanges, in particular the authorized body for their licensing (the National Agency for Project Management under the President of the Republic of Uzbekistan, hereinafter referred to as the Agency) has been determined, the licensing procedure and rules for crypto-exchange trading have been approved and the first crypto-exchange has been launched in this regard.
At the same time, the Agency continues to work on further development of methodological approaches to legal regulation and legalization of the crypto-asset market.
In January, 2020 the Agency placed a draft resolution of the President of the Republic of Uzbekistan "On measures to further develop the sphere of turnover of crypto-assets in Republic Uzbekistan” for public discussion.
The document provides for creation of a "Regulatory sandbox" for the development of digital technologies "Uzbekistan Blockchain Valley" affiliated with the Agency, formation of a favorable environment to develop the turnover of crypto-assets in Uzbekistan, conducting STO to attract foreign investment in the work of mobile operator MobiUZ (LLC "Universal Mobile Systems") and JSC "Uzbekgidroenergo".
One of the important elements within the project is the initiative to create a National Mining Pool "Uzbekistan Cryptocurrency Mining Pool" to combine the hardware capacities of miners who are residents and non-residents of the Republic of Uzbekistan engaged in crypto-asset mining.
Experience of Iceland and the Republic of Belarus, where a favorable environment has been formed for mining, shows that this business is actively developing at the local level and contributes to the inflow of the foreign exchange into the country.
The creation of a National Mining Pool, whose members, according to the project, will pay for electric energy at generally established tariffs, is perceived as a fundamental step in order to further develop mining industry in Uzbekistan. This step is also aimed for increasing transparency, security and control, as well as increasing the efficiency of energy consumption in the field of crypto-asset mining and providing favorable conditions for industrial and private miners on the territory of the Republic of Uzbekistan.
It is assumed that miners must participate in the mining pool, at the same time, it is proposed to license the activities of industrial miners, and to register private ones.
In order to encourage voluntary participation in the mining pool, the proposed norm stipulates that the pool members are offered to pay for electric energy at generally established tariffs.
Members of the mining pool will be able to legally sell the mined assets on local crypto exchanges or through a special platform arranged by the operator.
This mechanism will allow the miners of Uzbekistan to legalize their activities and eliminate "legal vacuum" for regulating their activities.
It should be emphasized that the draft document received a lot of positive feedback on the public debate portal, indicating the progressivity of the idea of creating a national mining pool. Today, there is already a tendency to change attitudes towards crypto-assets and related activities, including mining, varying from complete rejection to the study of their application in the banking and financial sector.
In general, the creation of a national mining pool is an extremely timely and appropriate initiative that will not only combine the capacity of miners at the country level, but will also allow to demonstrate once again to the world community that the Republic of Uzbekistan is an open country for innovation and advanced technologies, striving to create the most favorable investment climate, including in the sphere of crypto-asset turnover.