The Ministry of Energy of Uzbekistan has introduced a new bill that threatens to strangle the cryptocurrency industry in the country. A draft law published on Friday will lead to a sharp jump in electricity tariffs for miners.
The bill says that “in order to stimulate energy saving, increase energy efficiency in various industries and the non-profit sector, and also to support the rational use of electricity”, companies working with cryptocurrency assets, including miners, will be required to pay three times as much as they currently do.
Now the price of electricity for ordinary consumers is about 3.5 cents per kWh. Since mining is a very energy-intensive business, companies are looking for jurisdictions with lower energy costs in order to maximize profits.
The bill is open for public comment until October 12. Currently published 9 comments and suggestions.
One of the commentators, Salvar Rasulev, who is positioning himself as an IT entrepreneur, claims that even a double increase in prices will scare away the miners, effectively closing this area for the country. Nevertheless, mining is useful for Uzbekistan, as it brings foreign currency to the country.
Another commentator supported the bill, saying that raising prices for miners is the right step, because they do not create any important product or service for the country and society and waste valuable energy.
However, most comments state that the government should stimulate the development of the cryptocurrency industry in the country and apply a differentiated approach to pricing for electricity depending on the use of energy sources.