The government of Uzbekistan moved to expand its cryptographic regulations through a decree signed by President Shavkat Mirziyoyev. The document provides definitions for terms such as crypto assets, exchanges, and mining, and identifies the key industry regulator.
Agency under President Mirziyoyev to oversee the cryptocurrency market in Uzbekistan
The Head of State of Uzbekistan, Shavkat Mirziyoyev, has signed a new decree that expands the regulatory framework for the crypto space in the Central Asian country. Its stated goal is to further develop digital technologies, create favorable conditions for entrepreneurship and improve legislation in this area.
Forklog reports citing the document that the National Project Management Agency under the president’s leadership has been transformed into a National Agency for Perspective Projects. NAPP will become the main cryptographic controller in the country.
The regulator is tasked with implementing state policy in the crypto economy and ensuring the protection of investor rights. It will also be responsible for introducing blockchain technologies into the public sector and combating money laundering, terrorist financing and arms proliferation through cryptocurrencies.
The decree defines crypto assets as equity that represents a set of digital records in a distributed ledger that has value and owner. From January 1, 2023, citizens and companies of Uzbekistan will be allowed to buy, sell and exchange cryptocurrency through crypto service providers.
The president’s application lists a number of entities that fall into this category, including digital asset exchanges, mining pools, crypto repositories, and crypto stores. They will be required to register as local businesses and obtain mining licenses or certificates from the government agency.
Uzbekistan legalized cryptocurrency trading in 2018, but in late 2019 the government banned local residents from buying cryptocurrency. They can only sell. In November 2021, citizens were allowed to trade crypto-assets in the national currency on licensed local crypto exchanges while non-residents were allowed to exchange digital currencies for foreign currencies.
Decree Banning Unauthorized Mining and Mining of “Anonymous” Cryptocurrencies
Only registered companies will be able to mine cryptocurrency in Uzbekistan. Mining farms will pay higher electricity tariffs during peak hours of consumption. Unauthorized mining will be prohibited. The ban also applies to the minting of what the decree calls “anonymous cryptocurrencies” and any transactions with them.
Just as before, Uzbekistan will not be allowed to use or accept cryptocurrencies as payment for goods and services within the country. On the plus side, cryptocurrency-related transactions for individuals and businesses will not be subject to taxation, according to the document dated April 27, 2022.
Tax relief will also be provided to participants in the new regulatory sandbox that NAPP will establish to try crypto projects. Entities participating in the trials will also be exempted from other obligations to the state budget, including customs payments other than duties on imported hardware and software.
What do you think of the new crypto regulations in Uzbekistan? Let us know in the comments section below.
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