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Uzbekistan obliges crypto miners to pay 3 times more for energy

Oil&Gas Materials 12 December 2019 10:58 (UTC +04:00)
Uzbekistan obliges crypto miners to pay 3 times more for energy

BAKU, Azerbaijan, Dec. 12

By Fakhri Vakilov - Trend:

Uzbekistan set higher tariffs on electric energy for crypto miners, as approved by a resolution of the Cabinet of Ministers, which makes additions to the rules for the use of electricity, Trend reports citing Uzbek media.

Under the new rules, citizens of Uzbekistan involved in cryptocurrency mining will start paying for energy with an increasing tariff of 3.0 to the established one (4.7 cents per kWh), "regardless of the connected capacity."

The document will enter into force in three months - in March 2020.

Meanwhile, in early October, a group of Uzbek crypto miners recorded a video message to the country's leadership. It said that if higher tariffs will start to be applied to them, then the attractiveness of this business will drop significantly.

"We do not want to transfer our data centers to a foreign country. We want Uzbekistan to develop and receive benefits from this industry," the statement said.

According to them, Uzbekistan produces about 14 gigawatts of electricity per hour, while mining uses about 0.05 percent of this volume.

They also emphasized that mining could increase Uzbekistan’s exports by $120 million a year, using only 1 percent of the total electricity generated.

Entrepreneurs expressed their willingness to cooperate with the government and help to properly regulate the market.

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Follow author on Twitter:@vakilovfaxri

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