Uzbekistan legalizes crypto-exchanges, trading and mining

[Paha87]

The new presidential decree legalizes cryptocurrency trading in Uzbekistan, the introduction of licensing for crypto-exchanges and a set of requirements that they will have to comply with.



President of Uzbekistan Shavkat Mirziyoyev signed a decree on the legalization of cryptocurrency exchanges, local and regional media reported. The document introduces a licensing regime for trading platforms, as well as a number of requirements that they need to fulfill in order to be able to work in the country. This happens after an earlier decree was published in July, which gave legal grounds for regulating activities related to cryptocurrency

The decree" on measures to organize the activities of crypto-exchanges in Uzbekistan "No. PP-3926 of September 2 States that"an organization providing an electronic platform for the exchange, purchase and sale of crypto-currency assets is recognized as a crypto-exchange in Uzbekistan". At the same time, the legal document defines "cryptocurrency assets" as "a set of records in the blockchain that has value and owner".

According to the text, the distribution of these assets and the activities of trading cryptocurrency platforms will be regulated by special regulations and will not be covered by the legislation that currently applies to securities and activities of traditional exchanges.

Monitoring from the point of view of compliance with the rules of combating the legalization of proceeds from crime and financing of terrorism will be carried out by the licensing authority — the National project management Agency under the President and other relevant government agencies. The decree also notes that"the license for cryptocurrency exchange activities will be issued only to foreign legal entities that have established subsidiaries or other enterprises in Uzbekistan".

Another important aspect is that transactions of legal entities and individuals, including non-residents, related to the turnover of cryptocurrency, are not subject to taxation. Income derived from these transactions is not included in the basic income used to calculate taxes and other mandatory payments.

Specific requirements for trading platforms
The presidential decree contains a list of mandatory requirements for companies applying for a license to trade cryptocurrencies in Uzbekistan. They must have a share capital of at least 30'000 minimum wages on the day of application. The equivalent of 20 ' 000 minimum wages should be reserved on a separate account in one of the commercial banks of Uzbekistan. In 2017, the minimum wage in the country reached 1'453'200 som (~ 185 USD).

Applicants wishing to exchange cryptocurrency, needs to create an operational electronic trading system using servers located in the Republic of Uzbekistan. The platform will have to accept the rules of trade exchange rates and publish them on the basis of the ratio of supply and demand. Also, the created platforms will be required to store for five years information about all transactions, user identification data and other materials related to their interaction with customers, including business correspondence.

Crypto-exchanges in Uzbekistan will be allowed to receive remuneration for their services and determine the procedure for charging fees. Their operators will be able to organize exchange operations with residents and non-residents. According to Mirziyoyev's order, these " transactions may include the acquisition and / or disposal of cryptocurrency assets in exchange for national and foreign currency, as well as the exchange of certain cryptocurrencies with other digital coins."

Uzbekistan will allocate land for mining
The resolution of the head of state also briefly refers to the mining of cryptocurrency. According to the document, state-controlled energy companies "Uzbekenergo" and "Uzbekgidroenergo" will allocate land for industrial mining using more than 100 kWh of electricity without auctions. These places will be appointed in coordination with the National project management Agency under the presidential administration.

Link to innformation resource - https://altstake.io/news/uzbekistan-legalizuet-kriptobirghi-treyding-i-mayning