Uzbek crypto miners offered tax loophole

Crypto miners in Uzbekistan have been offered the option to buy solar panels to avoid paying through the roof electricity prices.

According to Reuters, any Uzbek crypto miner who opts to set up a solar panel system will be exempt from paying federal income taxes.

Those who stick to the national power grid will in turn end up paying double regular rates on top of surcharges during peak hours.

It is no secret that crypto mining takes a lot of energy, and the amount has become a hot topic worldwide.

In February this year, US congress filed an investigation into crypto energy consumption with members of Congress sending letters to various companies that mine Bitcoin (BTC) in the US, enquiring about details of energy use and practices.

BTC and Etheruem (ETH) currently require a protocol named proof-of-work (PoW). Such a consensus algorithm is used to solve equations and prevent economic attacks on the blockchain. The system requires a massive amount of energy.

The energy consumed to mine ETH on a POW is 73.2 TWh annually, the equivalent of the energy consumption of a whole country the size of Austria.

Crypto mining has been banned in some countries. Last year, the Chinese government banned crypto mining due to environmental concerns. However, after the ban, many miners moved to smaller countries close by, such as Uzbekistan and Kazakhstan.

However, the mining was so robust that total blackouts occurred, with Kazakhstan having no choice but to suspend BTC mining.

While we wait for the overall regulations surrounding crypto mining, you can use your crypto recreationally at Bitcasino, 1xBit or FortuneJack.

 

Source

Updated: 05/06/2022 — 13:00