Cryptocurrencies and blockchain technology, from regulations, to mass adoption to optimize services, has been a hot topic for governmental institutions all over the world. A recent statement issued by the President of Uzbekistan, Mr. Shavkat Mirziyoev, reveals his intentions to welcome decentralized exchanges to open local stores in the territory.
According to the presidential decree,
“The operations of legal entities and individuals related to the turnover [transactions] of crypto-assets, including those carried out by non-residents, are not taxable, and the revenues received from these transactions are not included in the base [foundation] for taxes and other mandatory payments.”
It should be noted that the document issued by the authorities establishes several points related on how trade and business with digital currencies will be managed. First, it is clear that the income or wages paid in cryptocurrencies will not be subject to taxes or taxes, as well as
“any licensed exchange that operates with digital currencies or foreign fiat currencies will not be subject to regulations”.
Although, for foreign exchanges that wish to obtain a license, they must comply with a series of regulations, which include:
- Opening a branch in the region
- Having a capital greater than or equal to $700,000 (30,000 times the minimum wage)
- Store the information of users and transactions for a period of not less than five years and…
- Comply with the anti-money laundering regulations
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for their part, federal and local authorities will also promote mining activities and will even provide a capacity of more than 100 kWh of electricity per plot without the need for an auction, which is generally required to acquire land. This is not the first time that the authorities of Uzbekistan are evaluating the possibility of adopting cryptocurrencies. In fact, last February, the government announced its financing plans for an innovation center to explore the use of blockchain technology in the capital, Tashkent.