The President Of Uzbekistan Has Issued A Decree Regulating Cryptocurrency Mining As Well As Trade

Participants in a new regulatory sandbox that the NAPP will develop to pilot crypto projects will also receive tax incentives. Other obligations to the state budget will be waived for the entities engaging in the trials, including customs payments other than duties on imported hardware and software.

According to Forklog, which cited the document, the president’s National Agency for Project Management has been renamed the National Agency for Perspective Projects. The NAPP will serve as the country’s primary crypto regulator.

Digital asset exchanges, mining pools, crypto depositories, and crypto shops are among the companies listed in the President’s directive as being under this category. They will be required to register as local firms and get government permits or mining certificates.

Through a directive signed by President Shavkat Mirziyoyev, the government of Uzbekistan has sought to broaden its crypto rules. The document defines words like crypto assets, exchange, and mining, as well as identifies the industry’s primary regulating organization. Shavkat Mirziyoyev, the president of Uzbekistan, has signed a new decree that broadens the country’s crypto regulatory framework.

Uzbekistan’s Cryptocurrency Market Will Be Overseen By An Agency Beneath President Mirziyoyev

Its claimed mission is to advance digital technologies, provide favorable conditions for entrepreneurship, and strengthen digital legislation. According to Forklog, which cited the document, the president’s National Agency for Project Management has been renamed the National Agency for Perspective Projects. The NAPP will serve as the country’s primary crypto regulator.

The regulatory body has been responsible for enforcing state policy in the crypto economy while also protecting investors’ rights. It will also be in charge of bringing blockchain technology to the public sector and using cryptocurrencies to combat money laundering, terrorist financing, and weapons proliferation.

Crypto assets are defined as property rights that constitute a collection of digital records in a distributed ledger that have value and an owner, according to the decree. Residents and organizations in Uzbekistan will actually want to buy, sell, and exchange digital currencies through crypto specialist co-ops starting January 1, 2023.

Digital asset exchanges, mining pools, crypto depositories, and crypto shops are among the companies listed in the President’s directive as being under this category. They will be required to register as local firms and get government permits or mining certificates. Crypto trading was authorized in Uzbekistan in 2018, but the government restricted local residents from purchasing cryptocurrency in late 2019.

Illegal Mining And Minting Of Unknown Cryptocurrencies Are Prohibited By Law

They had no choice but to sell. Citizens were allowed to trade crypto assets for national currency on regulated domestic crypto exchanges starting in November 2021, while non-residents were allowed to trade digital currencies for foreign fiat starting in November 2021. In Uzbekistan, only registered companies will be able to mine cryptocurrency. During peak hours of consumption, mining farms will pay a higher electricity tariff. Illegal mining will be outlawed. The guideline likewise disallows the making of mysterious digital forms of money and any exchanges including them.

Uzbek citizens will be unable to use or accept cryptocurrencies as a form of payment for products and services within the country, as they were previously. On the plus side, according to the agreement dated April 27, 2022, crypto-related transactions of individuals and businesses would not be taxed. Participants in a new regulatory sandbox that the NAPP will develop to pilot crypto projects will also receive tax incentives. Other obligations to the state budget will be waived for the entities engaging in the trials, including customs payments other than duties on imported hardware and software.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing