Uzbek authorities have toughened liability for illegal mining and circulation of cryptocurrencies

What’s new? On January 19, Uzbek President Shavkat Mirziyoyev signed a law introducing administrative and criminal liability for illegal mining and circulation of digital assets. The Code of Administrative Liability was supplemented with two new articles. According to the introduced changes, the illegal purchase, transfer, or exchange of cryptocurrencies, as well as the activities of service providers in this area without obtaining a license, will entail administrative arrest for up to 15 days or a fine of 20 to 30 basic calculation units (BCU) with confiscation of assets and equipment. The amendments will come into force on April 19.

Text of the law

What else is known? If these acts are committed repeatedly or on a large scale, the fine may increase to 400 BCU and restriction/imprisonment up to three years. For the same actions committed on a particularly large scale, with the use of official position, by an organized group, imprisonment of up to 5 years is provided.

Mining in violation of the established procedure, depending on the scale, is punishable by administrative arrest for up to 15 days or a fine of up to 100 BCU, while large-scale violations are also punishable by confiscation of the devices.

The law introduces punishment for conducting operations with anonymous cryptocurrencies and mining them: a fine of 30-40 BCU, and confiscation of crypto assets and devices for mining.

Repeated mining in violation of the established procedure or mining of anonymous cryptocurrencies is punishable by one of the following penalties: a fine of 100 BCU, correctional labor for 2-3 years, restriction, or imprisonment for up to a year.

Conducting hidden mining is punishable by a fine of 100 to 300 BCU or restriction/ imprisonment for up to 2 years. If it is a repeat offense, a particularly large amount, or prior conspiracy, the fine may reach 400 BCU and restriction/imprisonment up to 3 years. A similar offense using an official position carries up to 5 years in prison.

Last September, Uzbekistan made it mandatory for miners to obtain licenses. Crypto exchanges, mining pools, crypto stores, and depository institutions in the country shall be managed under a license from January 1, 2023.