Recently, the construction of a "national mining pool" has suddenly become a key project of the Uzbekistan government. The country's cryptocurrency industry regulator has announced that miners joining national-level mining pools can enjoy higher electricity price concessions. In addition to mining pool development, Uzbekistan will also launch a cryptocurrency trading platform license operation policy to facilitate the cryptocurrency trading activities of miners.
Mining computing power should be strengthened
This week, the National Project Management Agency under the President of Uzbekistan announced the government's 2020 cryptocurrency transaction and blockchain technology development plan. At a press conference on Monday, the Administration said that the government plans to build new mining pools to strengthen the mining power of domestic and foreign miners at the national level.
Local media Spot reported that the government's sudden announcement of the decision was undoubtedly the main motive behind the economic benefits, while hoping to increase the transparency and security of cryptocurrency mining. According to the National Project Management Agency, the establishment of a national-level mining pool can improve the industry's resource utilization rate, while attracting more investors to invest here.
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In addition, the government's measures to establish national-level mining pools have another purpose: to let cryptocurrency miners say goodbye to the state of "underground economy" and enter the state's tax regulatory system brightly. In addition to the state-level mining pool, Uzbekistan next week will also approve the country's first licensed cryptocurrency trading platform to provide a legal trading channel for cryptocurrency mining companies' digital currency trading activities.
It is understood that the first trading platform that has received national approval is called Uznex, which is operated by the Korean Kobea Group and is expected to officially open next Monday (January 20, 2020). The beta version of the platform's official website is currently online, with seven trading pairs mainly Bitcoin and USD Tether stablecoins, including BCH / BTC and BCH / USDT. Headquarters are located in the capital city of Tashkent.
As early as September 2018, U.S. President Shavkat Mirziyoyev signed a decree to implement a cryptocurrency trading platform's operating license policy in Uzbekistan, marking the beginning of legal recognition of cryptocurrency trading platforms. Prior to July of the same year, another decree signed by the President also laid the legal foundation for domestic cryptocurrency trading activities and the development of blockchain technology.
Eliminate impact and solicit investment
Although positive progress was made initially, the government's subsequent measures have negatively impacted the nascent cryptocurrency industry. According to the crypto news website news.Bitcoin.com, regulators have recently amended laws to restrict domestic individuals' use of cryptocurrencies. Local media reported that in early December last year, the National Project Management Agency issued an order prohibiting citizens of Uzbekistan from buying and selling cryptocurrencies, and cryptocurrency trading activities can only be carried out on platforms licensed by the state.
The major cryptocurrency mining pools in China have not been spared. The government also raised the price of electricity in mining pools in a new order. Under the new policy, miners pay three times as much electricity as before. Industry members said that according to the current price of cryptocurrencies, if the electricity price exceeds 1.7 times, the industry's profit will be very small. Although the market recovery has increased bitcoin's profits, high electricity prices have always been a major obstacle for the industry.
However, if the government builds a new mining pool, the situation will improve. Regarding the government's decision to raise the price of electricity for miners, the Project Management Agency has rejected it. In order to make up for the previous disadvantage, the Administration intends to restore miners' electricity prices to normal levels. Vyacheslav Pak, deputy director of the National Project Management Agency, said: "This measure should encourage more companies to engage in mining activities in the national mining pool." However, for miners outside the national mining pool, there is still a high electricity cost.
Regulators are currently accelerating their pace to establish new mining pools. The draft statutes of joint names of several agencies are already in preparation, and need to be discussed in public before being submitted to the president for signature. Vyacheslav Pak emphasized: "We must stop losses in a timely manner so that investors do not travel to neighboring countries to look for opportunities."