Regulation of cryptocurrencies and mining prescribed in Uzbekistan
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By the decree of the President of Uzbekistan Shavkat Mirziyoyev, the National Project Management Agency was transformed into the National Agency for Advanced Projects (NAPP). It will become the main regulator in the field of cryptocurrency circulation.
The agency will:
- develop and implement state policy, ensure the rights of investors in the field of cryptocurrency circulation;
- promoting projects to implement distributed ledger technology in public administration;
- development of measures to counter the legalization of proceeds from crime, the financing of terrorism and the proliferation of weapons of mass destruction through cryptocurrencies.
The regulation on the NAM contains definitions of crypto assets, mining, crypto exchanges and a mining pool.
According to the document, a crypto asset is a property right representing a set of digital records in a distributed data registry that has a value and an owner.
From January 1, 2023, citizens and legal entities of Uzbekistan will be able to carry out transactions for the sale and purchase or exchange of cryptocurrencies exclusively through service providers.
These include exchanges, mining pools, crypto depositories and crypto stores. They must register a legal entity in Uzbekistan and obtain a license (or certificate in the case of miners) from the agency.
The procedure for granting licenses for service providers and certificates for miners is currently under development, their approval is planned soon, NAAPP reported to ForkLog.
Operations of individuals and legal entities related to the circulation of cryptocurrencies are not subject to taxation.
The use of crypto assets on the territory of Uzbekistan as a means of payment or payment acceptance is still prohibited.
Mining can only be carried out by a legal entity registered with the NAAPP. In the case of connection to the unified energy system, a double coefficient to the established tariff is applied to payment for electricity for cryptocurrency mining, during peak periods, the surcharges established by the Cabinet of Ministers are added to it.
The regulation introduces a ban on the implementation of hidden mining, as well as the extraction of «anonymous cryptoassets» and transactions with them.
The NAPP also establishes a special regulatory sandbox regime, under which legal entities will be able to implement pilot projects in the field of cryptocurrencies.
Sandbox participants are exempt from all types of taxes and mandatory contributions to state trust funds, as well as customs payments, except for customs duties, for imported equipment or components, software and documentation.
Salaries of employees of such companies in this area will be subject to personal income tax at a rate of 7.5% .
Activities related to the use of cryptocurrencies as a means of payment are also prohibited within the sandboxes.
The term for the implementation of pilot projects under the special regime is no more than three years.
Recall that in November last year, Uzbekistan made changes to the provisions of cryptocurrency trading on licensed exchanges, giving residents of the country the opportunity to trade digital currencies.
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