Uzbekistan set rules for regulating the crypto market

A presidential decree has appointed a regulator and defined the requirements for industry participants

02.05.2022 - 08:05

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What’s new? Uzbekistan’s President Shavkat Mirziyoyev has issued a decree defining the rules for regulating cryptocurrencies and mining in the country. The main regulator of the industry will become the National Agency for Perspective Projects (NAPP).

The full version of the decree

What is known about the new rules? The presidential decree established the concept of a crypto asset. It is a property right that represents a set of digital records in a distributed data ledger. This right must have an owner and a value. The turnover of crypto assets by individuals and legal entities will not be subject to taxation. In this, the use of cryptocurrencies as a means of payment within the country remains prohibited.

Starting from January 1, 2023, transactions with crypto assets can only be carried out through service providers: crypto exchanges, mining pools, crypto stores, and crypto depositories. All providers have to be registered as legal entities and have a license and permits from the regulator.

The decree also introduces a ban on the circulation of anonymous cryptocurrencies and hidden mining. Legal miners are required to register with the NAPP and will be subject to a double multiplier on electricity bills.

What happened before? On March 30, Uzbekistan’s State Security Service shut down an illegal cryptocurrency mining farm in the Syrdarya region. During its existence, the farm mined $7,7 million worth of digital assets.

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