Uzbekistan to Throw its Doors Open to Tax-free Cryptocurrency Trading

Cryptocurrency Regulation Tax

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Tim Alper

Tim Alper

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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

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June 26, 2023 06:53 EDT

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Uzbekistan’s president has produced a draft decree that will see tax authorities in the country waive taxes on cryptocurrency trading and transactions – for both Uzbeks and non-nationals living in the country.

As previously reported, the government has been keen to implement the new measures – as well as new mining regulations – since the turn of the year.

However, according to a document posted on the government’s official website, the draft decree could be implemented as early as February, with a consultation period set to end at the end of this month.

The decree is entitled “Measures for the further development of the circulation of [cryptocurrencies] in Uzbekistan.”

Under the terms of the decree, crypto transactions would also be free from the kind of restrictions usually placed on foreign currencies.

The decree also contains further details of a proposed national “mining pool,” which will allow miners to make use of discounted electricity rates. Membership of the mining pool will be mandatory, and it will require miners to “combine their hardware capacities.”

The government will also reserve the right to conduct an emergency shutdown of all mining operations in emergency situations.

Industrial mining firms will be required to register with a regulator and obtain a license to provide “transparency,” the decree’s authors write.

The decree also includes proposals that would see the government create what it calls a “Blockchain Valley” – a regulatory sandbox for companies looking to “introduce blockchain technology and circulate [cryptocurrencies].”

Emurgo, the venture arm of Cardano, is also reportedly in talks with the government in what it calls a bid “to lead the development of a legal framework for security token offerings (STOs) and exchanges (STXs) in Uzbekistan.”

Meanwhile, the newly opened Uzbekistan Cryptocurrency Exchange (UZNex) is the first licensed crypto exchange to open in the Turkestan region, reports Regnum. The Uzbekistani government gave its blessing to the new platform, as part of a new set of pro-crypto measures. The media outlet states that a number of blockchain departments are also set to open at some of the country’s leading universities.