According to the new law, crypto exchanges, mining pools and services for storing cryptocurrencies are required to obtain a license to operate in the country. Legal entities receiving permission to provide services in the field of crypto-asset turnover will have to pay a state fee. The amount will be determined by the National Agency for Prospective Projects of the Republic of Uzbekistan (NAPP).
For unlicensed activities related to the circulation of crypto assets, or obtaining a license using falsified documents, a fine of 300 BRV (basic calculated values, about $8,150) is provided. For mining without a license or obtaining permission to mine through false documents, the fine will be 150 BRV ($4075).
The updated legislation will provide a safer environment for both cryptocurrency companies and investors, local officials are convinced. Compulsory licensing will increase oversight of the industry to prevent fraudulent activity. And taxation of licensed cryptocurrency and mining companies will provide an additional influx of funds into the state treasury.
The signed amendments may attract international mining companies to Uzbekistan, given the relatively low energy costs in the country. This makes Uzbekistan, local authorities believe, one of the few states with clear rules for regulating mining and cryptocurrencies.
Recently, the government of Uzbekistan allowed the private Ravnaq Bank and Kapital Bank to issue virtual cryptocurrency cards, and in June the country issued the first license to operate a crypto depository. It was received by a subsidiary of the brokerage firm Lockton Solution LLC-FZ from the UAE.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
