President of Uzbekistan issues decree regulating cryptocurrencies, mining and trade – News on Bitcoin regulation

The Uzbek government has moved to extend its crypto rules through a decree signed by President Shavkat Mirziyoyev. The document provides definitions of concepts such as cryptocurrencies, exchanges and mining and determines the industry’s primary regulator.

An agency headed by President Mirziyoyev to oversee the crypto market in Uzbekistan

Uzbek head of state Shavkat Mirziyoyev has signed a new decree extending the regulatory framework for the Central Asian nation’s cryptorum. Its stated aim is to further develop digital technologies, create favorable conditions for entrepreneurship and improve legislation in this area.

The National Agency for Project Management under the President has been transformed into the National Agency for Perspective Projects, Forklog reported, referring to the document. NAPP will be the country’s best crypto watchdog.

The supervisory body was given the task of implementing the state’s policy in the crypto-economy and ensuring the protection of investors’ rights. He will also be responsible for bringing blockchain technologies to the public sector and combating money laundering, terrorist financing and arms proliferation through cryptocurrencies.

The executive order defines cryptocurrencies as property rights that represent a collection of digital records in a distributed ledger that has value and an owner. From 1 January 2023, Uzbek citizens and businesses will be allowed to buy, sell and trade cryptocurrencies through crypto service providers.

The President’s order lists a number of entities that fall into this category, including digital asset exchanges, mine pools, crypto depots, and crypto stores. They will have to register as local businesses and obtain mining licenses or certificates from the public authority.

Uzbekistan legalized cryptocurrency trading in 2018, but in late 2019, the government banned local residents from buying cryptocurrencies. They could only sell. In November 2021, citizens were allowed to trade cryptocurrencies for domestic currency on licensed domestic crypto exchanges, while non-residents were allowed to trade digital coins for foreign fiat.

Order prohibits unauthorized mining and minting of “anonymous” cryptos

Only registered companies will be able to mine cryptocurrency in Uzbekistan. Mine farms will pay a higher electricity tariff during peak hours. Unauthorized mining will be prohibited. The ban also applies to the stamping of what the decree calls “anonymous cryptocurrencies” and any transactions with them.

As before, Uzbeks will not be allowed to use or accept cryptocurrencies as payment for goods and services in the country. But on the bright side, crypto-related transactions from individuals and companies will not be taxable, according to the document dated April 27, 2022.

Tax breaks will also be given to participants in a new regulatory sandbox that NAPP will establish to pilot crypto projects. Entities involved in testing will also be exempt from obligations to the state budget, including customs payments other than customs duties on imported hardware and software.

Keywords in this story

Crypto, crypto exchanges, cryptocurrencies, cryptocurrencies, cryptocurrencies, cryptocurrencies, decrees, exchanges, investors, licenses, miners, mining, payments, registration, regulation, regulation, trade, Uzbek, Uzbekistan, Uzbekistan

What do you think of Uzbekistan’s new crypto rules? Tell us in the comments section below.

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Lubomir Tassev

Lubomir Tassev is a technically savvy Eastern European journalist who loves Hitchens’ quote: “Being a writer is who I am, rather than what I do.” In addition to crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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