The executive power in Uzbekistan has advanced towards legalizing cryptocurrencies and implementing blockchain technology in both government and economy. A new decree signed by President Mirziyoyev mandates licensing for trading and other activities related to the circulation of digital coins. The document also calls for regulating crypto mining and smart contracts.
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Preparing the Legal Ground for Crypto Activities
Following in the footsteps of Belarus, Uzbekistan – another former Soviet republic – has taken steps to legalize its crypto sector as part of the efforts by the government in Tashkent to boost the country’s development through innovation. President Shavkat Mirziyoyev has issued a special decree that will help prepare the legal ground for the implementation of blockchain technologies, the circulation of cryptocurrencies, and the regulation of mining.
Presidential Decree Sets the Stage for Legalizing Cryptocurrencies in UzbekistanThe document, “On measures for the development of the digital economy in the Republic of Uzbekistan,” was signed on Tuesday and published on July 4. Decree №ПП-3832, which enters into force with its publication, notes that the technologies of blockchain, artificial intelligence, supercomputers, as well as the activities related to crypto assets are some of the main directions for digital development in many countries around the world.
Uzbekistan’s head of state has marked several tasks to further the development of the digital economy, the improvement of government systems and the creation of conditions for innovations in his country. Topping Mirziyoyev’s list is the introduction and expansion of activities related to the circulation of crypto assets, mining, smart-contracts, crowdfunding and blockchain technologies that can diversify investment and entrepreneurship. Some of these terms have been given proper definitions.
The decree also states that currency operations conducted by corporate entities and natural persons, including non-residents, related to the circulation of crypto assets, are not subject to taxation, and incomes received from such operations are not part of the taxable base. Also, crypto transactions by licensed entities will not be governed by the provisions of the regular currency law, according to the president.
Introducing Licensing for Crypto Exchanges
Advancing towards legalizing and regulating the sector, the presidential decree mandates the introduction of a licensing regime for activities related to the circulation of crypto assets. Newly created trading platforms will be issued licenses starting from October 1. The government body charged with overseeing licensing is the National Agency for Project Management under the Presidential administration.
