On September 2, 2018, the President of the Republic of Uzbekistan Shavkat Mirziyoyev signed a decree “On measures to organize the activity of crypto-exchanges in the Republic of Uzbekistan”.
The document notes that in accordance with the Decree of the President of the Republic of Uzbekistan dated July 3, 2018 No. PP-3832 “On measures to develop a digital economy in the Republic of Uzbekistan”, transactions and legal entities on the turnover of crypto-active assets, as well as income received from these operations, are not subjects of taxation.
Norms of legislation on currency regulation do not apply to currency transactions conducted by entities that possess the appropriate license.
Who can obtain the license?
The license for the activity on the turnover of crypto-assets and crypto-exchanges is issued only to foreign legal entities by opening subsidiaries or other enterprises on the territory of the Republic of Uzbekistan.
Responsibility for control over the activities of crypto-exchanges with regards to their compliance with the legislation on combating the legalization of proceeds derived from criminal activity and the financing of terrorism rests with the licensing agency and the relevant state bodies.
The main requirements for the operations of crypto-exchanges:
- the presence of a charter fund in the amount of at least thirty thousand times the minimum wage ( ~ $709,000) in the form of cash on the application date, of which twenty thousand are reserved on a separate account in a commercial bank of the Republic of Uzbekistan;
- the presence of a functioning electronic system of crypto-exchange trades placed on servers located on the territory of the Republic of Uzbekistan and corresponding to the requirements provided for in the provision on the procedure for licensing the activity of crypto-exchanges;
- the existence of rules of crypto-exchange trade;
- the implementation of quotes for crypto-assets on the basis of the ratio of supply and demand for them;
- information about transactions with client crypto-assets, as well as their identification data and materials on customer relationships, including business correspondence must be stored for at least five years
NAPU and the Ministry of Justice of the Republic of Uzbekistan within a month should put into effect the Regulation on the procedure for licensing the activities of crypto-exchanges, as well as make proposals on changes and amendments to the legislation arising from this resolution.
Responsibility for the implementation of the resolution rests with the head of the Administration of the President of the Republic of Uzbekistan Nizomiddinov Z.Sh., the first deputy director of the National Project Management Agency under the President of the Republic of Uzbekistan, Li DR and the first deputy advisor to the President of the Republic of Uzbekistan, Mavlanov B.M.