No income tax on Bitcoin mining for solar energy users: Uzbekistan
Reportedly Uzbekistan aims to slowly shift the crypto mining firms from coal-based energy operations to other economic friendly sources.
The citizens of Uzbekistan are crypto adaptive. Due to the huge inclination of the citizens toward crypto-related activities, the country introduced its crypto regulatory framework in 2018 to allow trading and also to allow the companies to operate crypto mining operations under full legality. The citizens of Uzbekistan are only allowed to trade under the domestic crypto exchanges only.
On 4 May, Reuters published a report on behalf of the presidential decree published this week. The report noted that Uzbekistan wants to give tax-free earning opportunities for the crypto mining firms, by shifting the operations from coal plant-based energy to solar energy.
The report also noted that the country may introduce highly strict rules against the crypto mining companies, which are operating businesses of digital assets mining on coal-powered traditional energy.
For the same, Uzbekistan’ will exempt tax for native as well as outsider Companies, which are operating crypto mining activities in the country.
The main bitter thing, that report noted, is new electricity tariff plans for the crypto mining firms. Under the new provisions, crypto companies will be forced to pay double charges for electricity consumption, over the normal electricity consumption charge. So in these situations, mining firms will consider shifting to Solar energy-powered mining operations.
Under the legalized crypto trading framework of Uzbekistan, only one crypto exchange was allowed to provide services and all the crypto mining companies are forced to sell their mined asset to only this one single exchange.
Another crypto news website, Coindesk, reported that new provisions will put additional requirements on the crypto companies to impose KYC process, and also it will include the provision to keep past 5-year records of the customers.
Read also: Binance secures crypto license in France
