According to a local media report, President Shavkat Mirziyoev has issued an order, or signed a decree legalizing the activities of crypto exchanges and trading in the country.
The document states that cryptocurrency-related income will not be taxed, licensed exchanges running operations with cryptocurrencies and foreign fiat currencies are not subject to existing foreign currency regulations and crypto exchanges are not subject to the country’s securities and exchanges regulations.
However, the presidential decree contains a list of mandatory requirements that companies applying for a license to trade cryptocurrencies in Uzbekistan are obliged to meet.
Firstly, foreign entities can only get a license for a cryptocurrency exchange after they open a subsidiary in Uzbekistan.
In addition, the terms for getting such a license may be restrictive: an exchange must have an authorized capital of no less than 30,000 times the average minimum salary, which amounts to roughly $700,000.
Further, servers must be located in Uzbekistan; And exchanges must utilize anti-money laundering procedures for users and they must store users’ transaction and personal data for at least five years.
According to a report from a news agency Fergana.ru, Uzbekistan is making this move because of its goal, to develop new regulations for cryptocurrencies in the country. In February, the government also announced its intention to create a state-funded innovation center for exploring the opportunities of blockchain in the state capital of Tashkent.
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