Crypto exchanges will begin operating in Uzbekistan

Crypto exchanges will begin operating in Uzbekistan

Since the beginning of 2018, Uzbekistan has set a course towards legalizing blockchain technologies, mining and cryptocurrency. For Uzbekistan, the development of Blockchain has become a national priority.

The country’s strategic course for the development of the digital economy was enshrined at the legislative level in July of this year. And on September 2, a new decree defining the activities of crypto exchanges in the country came into force.

The decree, signed by the president, defines the key aspects of the activities of the country’s cryptocurrency market. 

Crypto exchanges

- A crypto exchange is defined as an organization that provides “an electronic platform for the exchange, purchase and sale of digital assets.”

- Crypto assets are “a collection of records in the blockchain that have a certain value and owner.” 

-Cryptocurrency exchanges are exempt from taxation and are not subject to the law on the securities market.


Opening a crypto exchange

-The operation of a crypto exchange is possible only on the basis of a license.

-Only foreign legal entities have the right to obtain a license through the registration of branches or subsidiaries in Uzbekistan. 

-The minimum authorized capital is set at $702.6 thousand, while two-thirds of the amount must be reserved in the national bank.

-The electronic exchange trading system must be hosted on servers located on the national territory.

-The company must necessarily develop rules for exchange trading. 

Principles of operation of a crypto exchange

-Crypto exchanges have the right to conduct cryptocurrency transactions with foreigners and citizens of Uzbekistan.

-Cryptocurrency transactions include purchase and sale transactions and exchange of crypto assets for national and foreign currency.

-Crypto exchange has the right to independently establish and charge fees for services provided. 

-Cryptocurrency quotes are formed on the basis of market demand and supply for them.

-Five-year storage of all information about cryptocurrency transactions, all materials and user identification data is mandatory.


Industrial mining

This definition includes farms using over 100 kWh.. Uzbekenergo and other relevant departments have been instructed to identify special land plots for allocation for industrial mining without holding an electronic auction.

According to https://static.norma.uz

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