Rejoice, for the crypto storm is knocking down one domino at a time. The latest to fall is Uzbekistan Government’s skepticism about crypto. New regulations have been put into place for Crypto, as ordered by a Presidential decree. According to that, crypto trading will be legal and exchanges will be able to operate provided they obtain a proper license and meet the necessary requirements.
The country’s president, Shavkat Mirziyoyev, has given his assent to legalize crypto activities in the country and to that end, passed an official decree which outlines the new regulations. The decree “On measures to organize the activities of crypto-exchanges in Uzbekistan” was passed on 2nd September.
A licensing system will be in place that will regulate crypto exchanges. Foreign trading platforms will have to establish local subsidiaries in order to trade. They additionally need to abide by the rules of the country. Crypto exchanges have been defined in terms of any digital platform that engages in exchange, purchase and sale of crypto assets. These crypto assets are basically a set of records stored in a blockchain that is owned by someone and has value attached to it.
The new norms that exchanges will have to abide by are clearly outlined and they will be closely monitored by the State. The National Agency for Project Management will be responsible for this supervision, under the President. The norms include having an authorized capital which at least amounts to 30,000 minimum wages on application filing day.
A major relief for crypto enthusiasts is that all operations related to crypto, of any party, national or international, will be free from taxation.
The digital crypto-trading system which the companies will build to conduct business should run on servers located in Uzbekistan itself. The ratio between supply and demand will determine the rules for trading and publish exchange rates. Additionally, all transaction-related information along with other data, need to be stored for at least five years.
It’s a definitive step ahead for Uzbekistan and we hope to see the crypto market grow in the country in the following days.