- Uzbekistan announce plans to increase tax on Cryptocurrency mining facilities
- The tax is said to go up by 300%
- This new comes after Kazakhstan too announced crackdown on mining farms
The country of Uzbekistan announced in a circular that they will be taking several action on the mining farms established in their country as it is taking a huge toll in their energy resources. The government announced that they will be hiking the taxes on cryptocurrency mining by 300%.
The provision follows an Aug. 22, 2019 decree from President Shavkat Mirziyoyev entitled “On Accelerated Measures to Improve Energy Efficiency of Economic Sectors and the Social Sphere, Implement Energy Saving Technologies and Develop Renewable Energy Sources” and to further motivate the rational use of electrical energy by consumers.
However, due to the power intensive nature of the operations, the cost of electricity plays a great role in the feasibility of the operations. This decision by the Uzbekistan’s government might thus bring many miners to a point where they will have to relocate or shut down their rigs.
A similar move was taken last week by their neighbor, where at least 45 huge mining farms in Kyrgyzstan by the national Government were temporarily shut down. This bold move was taken as the government saw unexplained demand in electricity, which was eating up all the resources and reserves of the country. Kyrgyzstan is host to several remote mining platforms, . The drop occurred just hours to the launch of the much-anticipated Bakkt platform.