Uzbekistan: Presidential Decree to Legalize Cryptocurrencies

The mad race for modernity reaches the sphere of the government of Uzbekistan. The country tends to update its administrative system by adopting emerging technologies. By the way, a presidential decree highlighting measures to sustainably develop the cryptocurrency industry was signed on July 3rd.

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Uzbekistan has not always been a supporter of Blockchain and digital currencies. The craze there is very recent. As part of a government effort for development, President Shavkat Mirziyoyev took steps to legalize the cryptocurrency sector in order to integrate it into the country's economy.

The decree should prepare the legal ground for the regulation of mining Bitcoin and altcoins. Signed on July 3 and published the next day, the document on "Measures for the Development of the Digital Economy in the Republic of Uzbekistan" is now in force.

It states that Blockchain technologies, artificial intelligence, supercomputers and virtual currency activities are the main innovations leading to digital development.

Situations conducive to innovation have been put in place in the country through the list of Topping Mirziyoyev. This includes cryptocurrencies, mining, smart contracts , Initial Coin Offering (ICO) and Blockchain technologies that diversify investment and entrepreneurship.

A license awarded to crypto-scholarships

The presidential decree adds the introduction of a licensing system for activities related to the circulation of virtual currencies . Licenses for new trading platforms will be issued from 1 October 2018. The National Agency for Project Management is responsible for overseeing the licensing system, under the presidential administration.

Legal and natural persons, including non-residents, linked to the circulation of crypto-currencies are exempt from taxes. "Also, the revenues generated by these operations are not part of the tax base," also states the decree.

The new directives refer to a tax regime limited to cryptocurrencies:

"The turnover of cryptocurrencies is regulated by specific legal acts. Transactions related to this turnover are not subject to tax, while income earned is not included in the tax base. "

In any case, the tax relief attracts all companies and traders. If the country succeeds in stabilizing the flow of electricity to rural areas, the cryptocurrency industry in Uzbekistan would evolve further.

The nation is ranked third in terms of the lowest mining cost for Bitcoin, it could very quickly attract the attention of miners around the world.

What do you think of the initiative of Uzbekistan and its project of integration of Blockchain and crypto-currencies in the country? Let us know in the comments below.