Uzbekistan or formerly known as the Soviet nation is planning to legalize the crypto exchanges in the country and also with an intention to boost the market-based economy by providing tax benefits.
A presidential decree has been passed in order to promote the crypto industry and assist in setting up blockchain based companies. In this direction, a document named ‘On measures to organize the activities of crypto-exchanges in Uzbekistan’ is published. This will be an official document which provides guidelines for using cryptocurrencies.
Interestingly, a separate section is allocated for crypto-trading with a different set of rules also known as special normative acts. Also, the notable factor to observe here is that common laws applicable for security exchanges will not hold good for cryptocurrencies. Hence, the crypto industry need not worry about it.
As a precautionary measure, it’s always better to be aware of all the necessary Terms and Conditions accompanied by these laws. Following points outlines all required conditions to be met for setting up crypto exchanges.
- Any foreign industry willing to establish an exchange in Uzbekistan should be have enough capital to support a minimum of 30,000 wages on the day they apply.
- The servers of exchange authority is required to be set up in Uzbekistan only.
- All the exchanges are to adhere to rules for trading and publishing rates based on a demand-and-supply ratio.
- Also, the exchanges must store information on transactions, users identification, and other KYC/AML-based data for at least five years.
The good news for the people from the mining industry as well. As per legalization law, separate lands are to be allocated for mining operations by state-controlled energy companies. The law also describes the mining industry is permitted to utilize maximum of 100 KW/h of electricity on allocated lands by National Project Management Agency
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