Uzbekistan issues a decree setting out a comprehensive cryptocurrency regulatory framework.

The government of Uzbekistan has expanded its crypto regulations througha decree signed by the president Shavkat Mirziyoyev. The document provides definitions of terms such as crypto assets, exchanges, and mining, and identifies key industry regulators.

Uzbekistan regulates the cryptocurrency industry.

The creation of an agency supervising the sector

The new decree, published on April 27, orders the reorganization of a major presidential agency called National Program Administration (NAPM). Authorities previously encouraged cryptocurrency trading in Uzbekistan, proposing to allow residents to conduct all types of cryptocurrency transactions in 2021.

According to the decree, the NAPM will be reorganized into a new entity called National Outlook Project Agency (NAPP)responsible for a wide range of projects related to crypto regulation, with the mission of adopting a special regime to regulate crypto in Uzbekistan.

The agency must develop and adopt a unified national cryptocurrency policyas well as providing investor protections and taking action to combat illicit activities such as terrorist financing. NAPP will also initiate and promote projects that apply blockchain and other emerging technologies in public administration and other socio-economic areas.

Also Read: SEC Expands Crypto Investigations Division to Strengthen Investor Protection.

The establishment of a mining license and the minting of crypto-currencies

Only registered companies can mine cryptocurrencies in Uzbekistan. During periods of peak electricity consumption, mining operations will pay higher electricity bills. Unauthorized mining will be prohibited. The prohibition also applies to the minting of what the decree calls “anonymous crypto-currencies” and any transactions with them.

However, Uzbekistan still will not allow the use or acceptance of cryptocurrencies as payment for goods and services in the country. On the bright side, however, cryptocurrency-related transactions from individuals and businesses will not be taxed, according to the filing dated April 27, 2022.

Participants in the new regulatory framework that NAPP will establish to pilot cryptography projects will also benefit fromtax breaks. Entities participating in the test will also be exempt from other obligations to the state budget, including fees paid by customs beyond duties on imported hardware and software.

Bonus: A European Commissioner has called on global regulators to establish uniform crypto regulation.

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Uzbekistan issues a decree setting out a comprehensive cryptocurrency regulatory framework.


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