Uzbekistan Lifts Taxes On Cryptocurrency Incomes

According to Uzbek President’s order оn measures for further development of the crypto equity sphere in the Republic of Uzbekistan, taxes on cryptocurrency incomes will be lifted.

Under this document, foreign exchange regulation rules do not cover foreign exchange transactions with cryptocurrency.

Since February 1, 2020, all large miners in Uzbekistan should get a license. Small or individual miners have to be registered in the national mining pool, which will unite all local crypto market participants who obliged to pay for that membership. As an advantage, Uzbek miners would enjoy a lower tariff for electricity.

The government also plans to create a regulative sandbox for digital technologies called Uzbekistan Blockchain Valley. Various organizations that develop new financial products and services can work there with no regulatory risks.

Uzbekistan legalized cryptocurrency and blockchain in 2018. However, under the order of the National Agency on Project Management (NAPM), Uzbek citizens are not allowed to buy cryptocurrency at the electronic exchange or use it as a payment tool inside the country. Locals can sell cryptocurrency they own only if they obtained it during anonymous transactions.

The first Uzbek cryptocurrency exchange is expected to be opened by NAPM in cooperation with the Korean Blockchain Business Association (KOBEA) at the end of January.