Uzbekistan Legalizes Crypto exchanges and trading
September 7, 2018 8:24 am,
A new presidential announcement legalizes Cryptocurrency trading in Uzbekistan. To operate in the country, foreign trading platforms will have to establish local subsidiaries and abide by the country’s relevant laws and requirements.
Uzbekistan’s President, Shavkat Mirziyoyev, has signed a verdict legalizing the activities of Cryptocurrency exchanges.
There are certain laws which are required to be met, Firstly, The circulation of the assets and the activities of a crypto trading platform will be regulated with special acts and won’t be covered by the legislation that currently applies to securities and the activities of traditional exchange. Secondly, the license for conducting crypto-exchange activities will be issued only to foreign legal entities which have established subsidiaries or other enterprises in Uzbekistan. Thirdly, the revenues received as a result of these transactions will not be included in the base income used to calculate taxes and other mandatory payments as the operations of corporate entities and private persons, including non-residents, related to the turnover of cryptocurrencies are not subject to taxation.
There are some of the specific requirements that companies applying for a license to trade are obliged to meet:-
They must have an authorized capital equal to at least 30,000 minimum wages on the day of the filing of the application. The equivalent of 20,000 minimum wages has to be reserved in a separate account with one of Uzbekistan’s commercial banks.
The presence of a functioning electronic system of crypto-exchange trading placed on servers located on the territory of Uzbekistan, and complying with the requirements stipulated in the Regulations on the procedure of licensing of activity of crypto-exchanges.
The availability of rules for crypto-exchange trading.
The implementation of quotations for crypto-assets based on the ratio of supply and demand for them.
The storage for five years of the information about transactions of customers with crypto-assets, as well as the customers’ identification data and the materials on interactions with customers, including the business correspondence.
Crypto exchanges in Uzbekistan will be allowed to receive the remuneration for the services.
For mining of Cryptocurrency the state-controlled energy companies, “Uzbekenergo” and “Uzbekgidroenergo”, will be allocating land plots for industrial-scale mining operations using over 100 KW/h of electricity without holding auctions. These locations will be designated in coordination with the National Project Management Agency under the President’s administration.