In an effort to boost the market-based economy, the Uzbek government decided to take initiatives in line with the growing crypto-currency industry.
Uzbekistan Bitcoin Goes to Fish for Change
The former Soviet nation has confirmed that it has legalized the crypto currency and will allow the blockade companies to establish their own offices in the state. Legalization came after a presidential decree signed to encourage the use of cryptocurrency and blockchain in Uzbekistan.
A paper titled “Measures taken to organize crypto-exchange activities in Uzbekistan” published at the disposal of the President of the Republic of Uzbekistan has produced a set of official definitions for bitcoin-like crypto-currency. The government has confirmed that it will not process crypto money like securities. For this reason, laws common to security exchanges do not change crypto currency.
Instead, crypto trading companies will enter a new set of rules, called special normative acts.
Foreign legal entities that already own a subsidiary or other company in Uzbekistan will be able to open crypto currency exchanges. These organizations will not be obliged to pay taxes in crypto currency. Accordingly, any income obtained in the crypto-currency can be thought of as describing crypto-blocks as a sequence of data records in the block chain to Uzbekistan.
Applied Terms and Conditions
As the Uzbek government has introduced special conditions for the exchange of crypto, free advantages will not be fully free.
First of all, foreign institutions must have an authorized capital to support 30,000 minimum wages on the day they apply. In addition, a government subsidized commercial bank will have to make a payment of 20,000 minimum wage. The minimum monthly salary in Uzbekistan was 185 USD in FY2017.
Second, the state needs a crypto exchange to base its servers on Uzbekistan.
Third, Uzbekistan will change the exchange of commodities to comply with the rules of trading and publishing the stock market based on a demand and supply ratio.
Finally, the changes should store information about transactions, user identity, and other KYC / AML-based data for five years.
Crypto Mining Industry also Shares
The presidential decree also legalized crypto-money mining in Uzbekistan and ordered the state-controlled energy companies to allocate land for mining operations. Bitcoin mining companies will benefit from 100 KW / hr of electricity at locations determined by the National Project Management Agency, an agency of the presidency.