The govt. of Uzbekistan has recently confirmed that it’s legalizing digital currency exchanges and would enable the setup of blockchain based firms to line up their offices within the state. This action came within the wake of a presidential decree that was signed to encourage the employment of cryptocurrencies and blockchain in the state.
A document published at the command of the president of the Republic of Uzbekistan, titled “On measures to organise the activities of crypto-exchanges,” disclosed a group of official definitions for bitcoin-like digital currencies. The state has confirmed that it’ll not treat digital currencies like securities. Therefore, the common laws that are bound to security exchanges won’t hassle crypto exchanges. Instead, the crypto businesses would be considered underneath a new set of rules, called as special normative acts.
Only foreign legal entities that have already got a subsidiary or other enterprises in the state would be permitted to open crypto exchanges. These entities won’t be susceptible to pay taxes on their cryptocurrency turnovers. That said, any revenue derived from the cryptocurrencies would be considered untaxable, considering that the state would be defining crypto based assets as a set of data records based on the blockchain technology that have a worth and a owner, according to the statement.
The free perks won’t be exactly free as the govt. has additionally imposed special conditions that would be required to setup crypto exchanges in the state.
Firstly, the foreign entities should have a licensed capital to support atleast as much as 30,000 minimum wages on the day they apply. Moreover, an average of 20,000 minimum wages would be needed to be reserved in a state-backed depository financial institution ‘bank’. Secondly, the state needs the crypto-exchanges to base their servers locally only.
Thirdly, the state will require the exchanges to stick to rules for commerce and publishing exchanges rates supporting a demand-and-supply ratio.
Finally, the exchanges should store all the information on transactions, users identification, and KYC/AML – based information for a min. of 5 years.
The presidential decree additionally legalizes cryptocurrency mining in the state and has ordered energy firms to allocate apportion of lands for the mining operations.