Sun. Aug 7th, 2022

Uzbekistan is taking the necessary steps to expand the cryptocurrency industry in their country. As a result, they have announced that they will launch a licensed cryptocurrency exchange in the country alongside a national mining pool.

National Mining Pool – Several Features

Uzbekistan, a Central Asian country, recently announced their plans to put in place the required infrastructure to support the growth of the cryptocurrency industry. The NAPM, or the National Agency for Project Management, which is a government entity that operates directly under the President of the country, made public its 2020 plans for the regulation of trading digital currencies as well as the implementation of blockchain technologies.

In a press conference that took place this week, the Agency stated that they plan to create a national mining pool, and this project has been declared a priority. Miners who join the national pool will enjoy certain benefits including cheaper electricity rates. This would help to then consolidate the capacities of both local and foreign miners in the country at a national level, the agency added.

The primary goal behind the establishment of the national mining pool is to boost economic efficiency, transparency, and security of the crypto mining sector in the country. The agency believes that the national mining pool will improve energy efficiency in the crypto mining industry, thereby making Uzbekistan an attractive destination for foreign investors.

The reduced electricity rates would also help convince miners to join the national pool. Vyacheslav Pak, NAPM deputy director, stated that by offering reduced electricity rates, a higher rate of participation in the mining pool is expected. To further lure more companies to join the national mining pool, non-participating companies will be charged higher electricity rates.

Vyacheslav Pak also added that it is the priority of the NAPM to get the national mining pool up and running as quickly as possible. He stated that this would be a necessity as any delays will simply cause existing investors to move to neighboring countries.

Licensed Crypto Exchange To Launch Next Week

The NAPM is dedicated to rolling out the required measures in order to take crypto miners out of the shadow economy and into the limelight. Aside from the creation of the national mining pool, the agency will also be launching a licensed digital assets exchange by next week. This would be the first licensed digital asset exchange in the country and will provide a platform for miners to sell the cryptocurrencies they receive for processing transactions.

The cryptocurrency exchange, Uznex, which will be based in Tashkent, the capital of Uzbekistan, will be operated by Kobea Group, a South Korean company, and it is set to go live on Monday, the 20th of January 2020. The Uznex website is currently in its beta stage but is set to launch in a few days. According to data found on the beta site, there are currently severalavailable trading pairs including Bitcoin and Tether (USDT) as well as the BCH/BTC and BCH/USDT pairs.

These latest developments are not surprising considering Uzbekistan’s positive approach towards cryptocurrencies. Cryptocurrency trading was legalized in Uzbekistan after President Shavkat Mirziyoyev signed a special decree in 2018. The country also introduced licensing for cryptocurrency exchanges operating in the country.

Prior to the licensing of crypto exchanges, the presidency also signed another decree in July 2018 that prepares the legal ground for crypto-related activities and blockchain technology implementation in Uzbekistan. It won’t be surprising if more countries take up similar initiatives to attract foreign cryptocurrency investments.