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Uzbekistan Revamps Crypto Mining with New Regulatory FrameworkUzbekistan is ushering in a reset on its approach to cryptocurrency mining with the implementation of a new regulatory framework by the central Asian country’s National Agency of Perspective Projects (NAPP).Photo by Farhodjon Chinberdiev on UnsplashFocusing on solar powerThese freshly endorsed rules were announced earlier this week. They establish stringent guidelines for cryptocurrency mining operations within the country, reserving mining exclusively for registered legal entities and mandating the use of solar power.Under the sweeping regulations, individual miners are barred from participating in cryptocurrency mining activities, a move aimed at bringing structure and oversight to the expanding crypto mining sector within Uzbekistan’s borders.A key feature of the framework is the requirement for cryptocurrency miners to harness electricity generated by solar photovoltaic means. This environmentally conscious approach mirrors global endeavors to promote sustainability and clean energy sources in the crypto mining sector. Miners are also permitted to connect to the national electrical power grid, but only under specific conditions as outlined in the legislation.Safeguarding the power gridIn this respect, Uzbekistan is likely to be learning from the experiences of its northern neighbor, Kazakhstan. Following a ban on crypto mining in China in 2021, Kazakhstan suddenly became the second largest global center for Bitcoin mining. Unprepared for this eventuality, this mining activity caused major problems for the country’s power grid, resulting in blackouts and unrest.The NAPP underscores the necessity for mining operations and service providers to adhere to these newly established rules. To engage in cryptocurrency mining legally, entities must secure the requisite permits and licenses. These permits, valid for five years, come with strict reporting obligations, ensuring transparency and regulatory compliance.Moreover, cryptocurrency miners must prioritize the technical integrity of their electrical supply systems, emphasizing safety and reliability to prevent electrical accidents and maintain secure operating environments.In a bid to nurture a controlled and regulated cryptocurrency ecosystem, Uzbekistan’s crypto watchdog has already issued licenses to several entities, including a cryptocurrency exchange, a crypto depository, and ten other crypto trading platforms. Encouragingly, discussions have taken place with global exchanges like Binance, Huobi, and Bybit, signaling Uzbekistan’s ambitions to establish itself as a cryptocurrency hub.Ban on individual minersThe NAPP’s latest framework also outlaws the mining of anonymous cryptocurrencies designed to enhance transaction privacy, such as Monero (XMR). This measure aligns with international efforts to combat illicit activities linked to anonymous digital currencies.It’s worth noting that these new regulations represent the latest in a series of decrees by the Uzbek government, reiterating the ban on individual miners and the use of cryptocurrencies for domestic payments. Consequently, the full impact of these recent regulations on the nation’s cryptocurrency mining landscape remains to be seen.Uzbekistan’s decision to confine cryptocurrency mining to legal entities employing solar power reflects a growing understanding of the opportunity the activity provides to effectively exploit excess renewable power. In July, the President of eastern neighbor Kyrgyzstan put forward an ambitious project to use crypto mining to exploit the country’s hydro-electric power resources.

Korean Banks Look into Safer Crypto Investment Amid Wealth Management GrowthDespite growing economic uncertainties, the Korean wealth management market is expected to see growth, triggering fierce competition in the banking industry.©Pexels/Adrien OlichonWealth management growth in APACAlthough the Korean wealth management industry saw a slowdown in its growth last year amid burgeoning economic concerns, the banking industry expects recovery in the future. Management consulting firm Oliver Wyman forecast that the Asia-Pacific wealth management industry will experience a compound annual growth rate of 5.4% until 2026. Against this backdrop, Korean banks are focusing on improving their wealth management capabilities.Crypto-inclusive wealth management trendShim Hyun-jung, a researcher at Woori Finance Research Institute, said that following the global trend, the Korean wealth management industry will need to diversify its target customer groups, adding that banks have to devise phased strategies and deploy them while closely monitoring the domestic crypto market.Previously, several global consulting firms mentioned the following as this year’s asset management trend: Customer segment diversification, growing demand for asset transfer and withdrawal, digital asset management with better human interaction, more investment in environmental, social, and governance (ESG) projects, and advancement in virtual asset security and service technology.

The Russian authorities are in the process of bringing in a national registry for crypto mining equipment, with registration to be a mandatory requirement for all operators. That’s according to a report published by Russia’s state-owned news agency, Tass, on Feb. 3. The registry is being established by the country’s Ministry of Energy, with Yevgeny Grabchak, deputy minister of energy, heading up the project.Photo by Egor Filin on UnsplashThe measure is being introduced as part of a raft of amendments to existing mining regulations. The objective is to improve oversight relative to crypto mining activity within the Russian Federation.  Unauthorized mining has been a concern for the Russian authorities for some time. According to the TASS report on this development, the registry would make mining without equipment registration “impossible.” Late last year, a Russian government commission moved to ban crypto mining in specific regions of the country. Management of the power grid was understood to be the main motivating force. Crypto mining activity had caused power shortages in some areas.  A seasonal ban was implemented, running from December to mid-March, with the measure to be repeated each year until 2031. In August of last year, Russian President Vladimir Putin had signed into law legislation that recognized the legitimacy of crypto mining in Russia.  Illegal mining, particularly within these restricted regions, continues to be a concern for the authorities, prompting this latest measure. Additionally, the authorities plan on establishing clear criteria in order to define crypto mining and deal with gaps in current legislation which may be enabling illegal and unregistered operators to carry out such mining activity. According to a report last month by local news media outlet Prime, Russia saw a surge in demand for Bitcoin mining equipment in Q4 2024. Crypto equipment demand increased threefold in comparison with the same quarter in 2023. Addressing the need for a crypto equipment registry, the Russian government stated: “It is important to adapt the law ‘On Mining’ to the current situation, in particular, based on practical experience, to formulate clearer criteria for classifying activities specifically as the production of digital currency.” While efforts are being made to get a firmer grasp on unauthorized mining in areas that are being impacted by power shortages, work is also being done to use crypto mining as a mechanism to fully exploit surplus energy.  Last month, it was revealed that Russian state-owned power company Rosseti is evaluating Bitcoin mining as a means through which surplus energy can be utilized in low-demand regions. In a separate development, the TASS news agency also reported on Feb. 3 that crypto miners are now in a position to report their earnings via online accounts with Russia’s Federal Taxation Service (FNS). The TASS report stated: “A new function has appeared in the personal accounts of taxpayers. With the help of the online service, users can now send information about receiving digital currency to the tax authority.” The feature appears once the registered user submits an electronic signature.