In order to booze its market economy, the Uzbekistan government has taken initiatives in favour of the growing cryptocurrency industry.
The previous Soviet country affirmed that it is authorizing cryptocurrency exchanges and will permit blockchain organizations to set up their workplaces in the state. The authorization came in the wake of a presidential declaration that was marked to empower the utilization of cryptocurrency and blockchain in Uzbekistan.
A document published at the behest of the president of the Republic of Uzbekistan, titled “On measures to organize the exercises of crypto-trades in Uzbekistan,” revealed a set of authority definitions for bitcoin-like cryptocurrencies. The state has confirmed that it won’t treat cryptocurrency like securities. In this manner, the laws that are regular to security exchanges will not trouble cryptocurrency exchanges.
Only foreign legitimate entities which already have a subsidiary or other enterprises in Uzbekistan will have the capacity to open cryptocurrency exchanges. These entities will not be to pay assesses on their digital currency turnovers. All things considered, any income inferred in cryptocurrency will be untaxable, considering Uzbekistan will define crypto assets as an arrangement of information records on blockchain — which they, in fact, are — that has esteem and proprietor, as per the content.
Initially, the foreign entities must have an approved money to help as much as 30,000 least wages on the day they apply. Further, an equivalent of 20,000 least wages should be held in a state-supported business bank. The base month to month pay in Uzbekistan was near $185 in FY2017.
Furthermore, the state requires the crypto-exchanges to base their servers in Uzbekistan.
Thirdly, Uzbekistan will require the exchanges to abide by rules for exchanging and distributing trades rates in view of a demand-and-supply ratio.
At last, the exchanges must store data on transactions, users identification, and other KYC/AML-based data for a long time.
The presidential declaration additionally sanctions cryptocurrency mining in Uzbekistan and has requested state-controlled energy companies to dispense lands for mining tasks. The bitcoin mining organizations will use more than 100 KW/h of power on areas assigned by the National Project Management Agency, a body governed by the President’s office itself.