The Uzbek government has begun expanding its crypto regulation through a decree signed by President Shavkat Mirziyoyev. The document contains definitions of terms such as “crypto assets”, “exchange” and “mining”, and defines the main regulator of the industry.
According to the decree, only legal entities can mine virtual currencies. Miners connected to the unified power grid will have to pay for electricity at a double rate. The regulation also introduces a ban on the mining of anonymous cryptocurrencies.
Also, by decree of the President of Uzbekistan, it is ordered to reorganize the National Agency for Project Management (NAPU), operating under the auspices of the President of the Republic, into a new structure – the National Agency for Advanced Projects (NAPP). NAPP will be responsible for a wide range of projects related to the introduction of a “special cryptocurrency regulation regime” in Uzbekistan.
From January 1, 2023, residents of the country will have the right to sell and buy digital assets only on platforms owned by exchanges registered in Uzbekistan, mining pools, crypto stores and crypto depositories. These entities will need to register as local businesses and obtain mining licenses or certificates from a government agency. At the same time, all transactions related to virtual currencies will not be taxed.
The function of control over the turnover of cryptocurrencies was assigned to the reorganized NAPP. The agency will monitor the observance of the rights of investors, develop mechanisms to combat the illegal use of digital assets and support projects aimed at integrating blockchain technology into the public administration system.
The NAPP has been granted the right to establish legislative conditions for organizations using cryptography and blockchain technologies, as well as for providers of virtual assets, including companies that trade and mine cryptocurrencies. The agency will be responsible for licensing virtual asset service providers, as well as financial oversight of the timely payment of government duties and taxes by participants in the cryptocurrency industry.
“Participants of the special regime are required to pay mandatory contributions to all types of taxes and to state trust funds, as well as customs payments for equipment, technological documentation, software imported for their own needs, not produced in the Republic of Uzbekistan,” the presidential decree says.
Violation of the law will be punished under articles 177 (“Illegal acquisition or sale of currency values”) and 190 (“Engaging in activities without a license”) of the Criminal Code of the Republic of Uzbekistan, which provide for punishment up to seven years in prison.
Uzbekistan legalized work with crypto assets in 2018, but at the end of 2019, the government banned local residents from buying digital money. They could only sell them. In November 2021, citizens were again allowed to trade crypto assets for their national currency on licensed domestic crypto exchanges, while non-residents were allowed to exchange digital coins for foreign fiat.
As before, Uzbeks will not be allowed to use or accept cryptocurrencies as a means of payment for goods and services within the country.
Source: ixbt
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
