Following in the footsteps of Russia, Uzbekistan has announced plans to implement arbitration mechanisms to resolve disputes in the cryptocurrency space. A new presidential decree mandates the establishment of a body of arbitrators that will deal with cases involving entities from various jurisdictions.
Also read: Growing Number of Crypto Companies Operating From Belarus
Arbitrators to Resolve Disputes Under National and Foreign Law
Tashkent International Arbitration Center (TIAC) will operate under the Chamber of Commerce and Industry of Uzbekistan. According to the document signed by President Shavkat Mirziyoyev, the platform will be used to settle disagreements over investments, intellectual property and crypto-related technologies.
TIAC will abide by international arbitration standards as it will review disputes between not only local companies but also entities registered in other countries. It will apply domestic as well as foreign law, if the sides agree on that. According to a report by Gazeta.uz, both Uzbekistani citizens and qualified experts from abroad can be appointed as arbitrators.
The center will provide consultations to businesses, including foreign investors operating in the Central Asian country. The arbitration tribunal will also concentrate its efforts on preventing legal disputes, including in cases in which the state administration is involved.
TIAC’s rulings will be enforceable in the territory of Uzbekistan, in accordance with local laws governing arbitration proceedings and international treaties to which the country is a party. Arbitrators will be allowed to use mediation and other mechanisms to resolve disputes within the framework of the law.
According to Uzbekistani media, a supervisory board consisting of leading international experts will assist and monitor the implementation of global standards and practices by the arbitration center. President Mirziyoyev has tasked the country’s chamber of commerce with drafting a law “On International Arbitration” within a month, in order to create the legal basis for TIAC’s activities.
Uzbekistan’s Crypto-Friendly Policies
The government of Uzbekistan has been consistent in its efforts to regulate the cryptocurrency sector. In July, another presidential decree created conditions for the legalization of cryptocurrency transactions, blockchain technologies and mining. This past September, Shavkat Mirziyoyev authorized the introduction of a licensing regime for digital asset trading platforms. Two state-owned energy companies, Uzbekenergo and Uzbekgidroenergo, have been instructed to allocate land plots for industrial-scale mining facilities.
With the decision to set up an international arbitration center in Tashkent, Uzbekistan became the second country in the former Soviet space trying to implement the mechanism for resolving disputes in the cryptocurrency industry. This month, a leading industry organization in Russia announced plans to establish an arbitration body that will be tasked with settling disagreements between participants in the digital economy, including investors and startups conducting initial coin offerings (ICOs) and parties to smart contracts recorded on distributed ledgers.
What do you think about the implementation of arbitration procedures in the crypto industry? Share your thoughts on the subject in the comments section below.
Images courtesy of Shutterstock.
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