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Uzbekistan Favors The Growing Cryptocurrency Industry

Uzbekistan Favors The Growing Cryptocurrency Industry

The government of Uzbekistan has decided to develop initiatives favorable to the growing industry in a move to boost the country’s economy. The legalization of cryptocurrency exchanges has been confirmed along with allowing blockchain companies to establish their offices in the state.

These steps were announced shortly after the publishing of a document declaring that the state is encouraging the use of crypto and blockchain technology in Uzbekistan. The document, titled “On measures to organize the activities of crypto exchanges in Uzbekistan”, includes confirmation that the state won’t treat cryptos as securities. Therefore, the crypto trading business will be regulated by a special normative act instead of by common security exchanges law.

Foreign legal entities which have already established a subsidiary or other enterprise in the country will be allowed to open crypto exchanges. They will no be liable for tax on their crypto turnover. 

On the other hand, there will be special conditions for setting up an exchange. For example, a foreign company must have authorized capital equivalent to 30,000 times the monthly national minimum wage (on the day of the application). The equivalent of 20,000 times the monthly minimum wage must also be reserved in a state-backed commercial bank. Moreover, crypto exchanges will be required to base their servers in Uzbekistan.

Aside from legalization of crypto exchanges, mining also gets its share. The presidential decree has ordered that state-controlled energy companies allocate land for mining operations. 

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