In the latest episode of "Deconstruction," we discuss Uzbekistan's crypto initiatives and the corporate challenges facing OpenAI. Our guest is Mikhail Korneev, head of key products at Asterium.
Mining at the Bottom of the Aral Sea
ForkLog (FL): What is the new mining zone and what is its purpose?
Mikhail Korneev (M.K.): The new zone will utilize vast unoccupied territories in Karakalpakstan, where the Aral Sea once was.
Data centers and alternative energy sources will be built there. This foundational infrastructure could eventually support powerful AI clusters and processing centers.
FL: Participants in the zone don’t pay taxes but give 1% of their revenue. Is that a lot?
M.K.: The rate is quite reasonable. In mining, 1% of revenue translates to about 3% to 10% of net profit.
Of course, due to blockchain volatility, there are times when operations can incur losses. Companies need to understand this and plan when it’s more profitable to shut down mining farms.
FL: The electricity tariff will be 14 cents per kWh. Why is it so expensive?
M.K.: The historical price of 150 sums per kWh is long gone—electricity costs have risen significantly due to urban growth. The tariff is designed to attract large enterprises, both local and international.
The government aims to work with major players. The golden age of mining is over; now everyone should focus on scaling up.
FL: How is private crypto business regulated in Uzbekistan, and what do licenses cost?
M.K.: Illegal mining is prohibited, and the regulator, NAPP, issues four types of licenses: for crypto shops, exchanges, depositories, and mining pools. A crypto shop license is an entry ticket for small businesses, costing around $30,000 to $35,000.
A depository license is about $100,000, while a crypto exchange license costs around $800,000. The latter allows operations with institutional clients and is a feasible amount for industry leaders.
FL: Why would an ordinary person enter a regulated space when they can exchange crypto cheaper and anonymously through P2P?
M.K.: The gray P2P market in Uzbekistan is virtually non-existent; the regulator monitors this closely. Foreign exchanges with unlicensed products are blocked. Additionally, P2P schemes carry a high risk of fraud.
The regulated zone allows for legal crypto use. Until 2029, income from crypto assets is tax-exempt, so there are no questions about their origin unless it’s a criminal case.
FL: You’ve launched crypto cards and tokenized gold. Why create a local token when there are more liquid alternatives?
M.K.: This is an infrastructure product for people unfamiliar with crypto but interested in investing. The token is backed by real gold stored in a bank, and anyone can exchange it for a physical bar.
The key feature is that these tokens can be used for payments via our crypto cards. A person can load a gold token onto the card and simply pay at the checkout, knowing their asset has appreciated in value.
Scandals at OpenAI
FL: The trial between Elon Musk and OpenAI management has begun. Who will win, and how will it affect the market?
M.K.: It doesn’t matter who wins because the market has already formed. Whether AI is commercial or non-profit, the direction has long been set towards capitalization and scaling.
New major players have emerged, like Anthropic and Chinese neural networks. This has become part of a new reality where memory and computing power are being acquired years in advance.
FL: If OpenAI runs out of money or the trial leads to its collapse, will that crash the AI industry?
M.K.: Even if a worst-case scenario occurs and OpenAI collapses, it won’t change the market. OpenAI was merely a pioneer that created this vast economic segment.
Now, huge corporations have entered this field. OpenAI is no longer such a significant part that its disappearance would determine the fate of the entire industry.
FL: Can a trillion-dollar company be built with a soft leader?
M.K.: Probably not. If we look at Steve Jobs' history, he was a visionary but also a tyrant who fired people on a whim.
Pioneering companies often have such tough, sociopathic leaders.
FL: Will governments impose strict control over AI, or are we already hostages to tech billionaires?
M.K.: Governments are not hostages, but their interests will be very clear. No one wants to slide into Orwellian dystopia, but the "Terminator" scenario necessitates some control.
We will likely arrive at a hybrid model. The government will establish regulatory frameworks and licenses, but private companies will continue to be the main drivers of technological progress.
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