Uzbekistan Takes a Step Towards Legalizing Cryptocurrencies

Uzbekistan Takes a Step Towards Legalizing Cryptocurrencies

A new decree has been signed by the President of Uzbekistan. It will encourage the development and integration of cryptocurrency and blockchain technology in the nation

The decree was signed by Shavkat Mirziyoyev, the President of Uzbekistan, on 3rd of July this year with an aim to advance efforts towards building a digital economy that accepts the blockchain technology and also accepts the trading, mining, adoption and issuance of cryptocurrencies.

A translated excerpt from the decree reads as:

“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.”

The decree is titled ‘On measures for digital economics development in the Republic of Uzbekistan’. It calls for a large number of key tasks to propel the country in advancing to a digital economy, including the development of a legal framework to recognize and legalize the crypto and blockchain sector. It also outlines a highly favorable tax position for the crypto sector which will benefit individual investors as well as regulated companies.

The nation’s recently established government body under the President’s office, National Project Management Agency (NAPU), is about to spearhead the effort to develop and implement Uzbekistan’s digital economy initiatives. The government body will have a major say in the creation of a legal framework and it will also detail out the applications of blockchain technology in the public sector.

Other guidelines from the decree include:
1. Creating the required framework to introduce blockchain technology.
2. Training qualified personnel to implement and develop the use of blockchain technology in the public sector.
3. Coordination with international authorities and organizations in the field of blockchain technology and crypto assets.
4. The development and adoption of the crypto sector including issuance, distribution, insurance, mining and crowdfunding activities.

Earlier, Uzbekistan was also planning to open a center for distributed ledger technologies. In Uzbekistan, mining expenses are among the lowest in the world, as the country is a leading producer of electricity.

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Aayushi Dhawan
Aayushi Dhawan is an avid reader, researcher, crypto writer and a passionate student. While pursuing her graduation in commerce at SRCC, she realized that writing and Finance give her immense pleasure. She is currently pursuing her post graduation in Commerce (Finance) from Department of Commerce, Delhi School of Economics and keeps on exploring the intricacies of research, her biggest strength.