Home Cryptocurrency Uzbekistan begins crypto tax exemption, launches first licensed crypto exchange

Uzbekistan begins crypto tax exemption, launches first licensed crypto exchange

Uzbekistan government has issued a presidential decree to begin processing of introducing tax exemption for income earned on crypto assets.  The country also launched its first-ever crypto exchange after giving a regulatory license to Uznex.  Uznex is said to be operated by Korean company Kobe group.

Uznex was launched on Monday, 20-01-2020, at an opening ceremony in Tashknet, where an international blockchain conference held and was hosted by the Korean Culture Center.

Alongside the tax exemption being processed, the country is also processing establishing a blockchain valley and licensing regime for cryptocurrency miners.

 A decree issued earlier by the central Asian country’s government laid the foundation for many activities to develop the country’s digital economy.

A draft document as regards this read: Operations of legal entities and individuals related to the circulation of crypto assets, including those carried out by non-residents, are not objects of taxation, and income received from these operations is not included in the tax base for taxes and other obligatory payments.

As the country prepares to exempt tax from crypto earnings, a draft-decree containing provisions to crypto earnings tax exemption was published last week for public discussion.

However, the country’s government announced that citizens would not be allowed to buy cryptos from licensed exchanges. Digital assets holders are only allowed to sell coins that have not been obtained through anonymous transactions.

The government also mentioned that foreign companies and nationals residing in Uzbekistan will have full access to its services within the framework of the country’s legislation.

Before now, the National Agency for Project Management (NAPM) that regulates oversight of the digital economy including the crypto sector, announced its plans for 2020.

Parts of its priorities are to establish a “national mining pool” for all private miners who will enjoy preferential electricity rates and also all industrial-scale mining operations, according to the latest decree, will be subject to licensing starting from Feb. 1.

The government in Tashkent also intends to create a regulatory sandbox for testing crypto technologies called Uzbekistan Blockchain Valley.

Authorities want to allow entities involved in the development of new financial products and services to implement them and conduct experiments without violating applicable laws. ‘

The proposals for the establishment of the pool and the sandbox came from NAPM, the Central Bank of Uzbekistan, the Ministry of Development of Information Technologies and Communications, and the Ministry of Energy.

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