Uzbekistan Legitimizes Cryptocurrency Activity In New Decree

The President of Uzbekistan, Shavkat Mirziyoyev, recently signed a decree that permits the existence of cryptocurrency exchanges and other activity surrounding the industry, according to local media. The decree details regulations each exchange must follow, alongside a list of requirements to establish a platform in the country, as reported by Bitcoin.com.

Long Time Coming

This news comes shortly after another decree signed back in July, which set the foundation for cryptocurrency legalization in Uzbekistan.

The document, № ПП-3926, states that crypto activity won’t be regulated by current legislation surrounding securities and that it will instead be regulated by specific acts put into place for digital assets. Here, cryptocurrencies are defined as blockchain records that provide value which one has ownership over. Only entities that provide a platform for the trading of crypto assets will be recognized as an exchange, according to the document.

An exchange license will be granted to foreign enterprises if they have some sort of establishment in Uzbekistan already. Any and all monitoring practices will be done by the National Agency for Project Management under the President, alongside other government joints. Of course, these processes are to prevent criminal and terrorist activity via digital assets.

Finally, the decree asserts that any party operating a crypto exchange will be exempt from taxation for activity on the platform.

Suggested Reading : Learn more about some of the best cryptocurrency exchanges.

Regulations Abound

Going more in-depth on the regulation requirements, the document states that a possible exchange must have authorized capital equal to at least 30,000 minimum wages before applying. The enterprise must also have 20,000 worth of minimum wages in a separate account managed by an Uzbekistan bank. However, the decree doesn’t declare whether this is monthly or daily salaries.

Applicants must have already built authorized trading servers within Uzbekistan, while also agreeing to store user data for up to five years. Exchanges may be eligible to receive remuneration via their providers while retaining control of fees.

The document touches on the topic of cryptocurrency mining as well. Two firms, Uzbekenergo and Uzbekgidroenergo, are assumed to be setting up land to build mining locations. Ideally, designs will be made under the Nationwide Venture Administration Company with oversight from the President.