Uzbekistan Increases Monthly Fees for Crypto Market Participants
Uzbekistan’s National Agency for Prospective Projects (NAPP) has announced a new directive to raise the monthly fees for those involved in the crypto market within the country.
This directive was issued on Tuesday, March 19, 2024, in anticipation that the sector’s revenue will double once the new structure is in place.
Uzbekistan Implements Revised Fee Structure for Crypto Exchanges
The decision to revise the fee structure follows an earlier directive from the Ministry of Justice in September 2022. The NAPP reviewed the profitability of crypto trading and exchanges, leading to the implementation of a new fee system affecting the crypto market.
Under the updated system, crypto exchanges will be subject to a monthly fee of 740 basis reference value (BRV), equivalent to 251.6 million Uzbekistani som ($20,015). This is a significant increase from the previous fee of 400 BRV, or 136 million som ($10,819). The BRV is a standard measure used in financial transactions, including taxes and fees.
Similarly, crypto retailers will experience a notable monthly fee increase, now at 185 BRV per month, or 62.9 million som ($5,003). This is a considerable increase from the previous fee of just 20 BRV, approximately 6.8 million som ($540).
In May 2022, licensed crypto companies in Uzbekistan were mandated to pay monthly fees, primarily allocated to the state budget, per an official document published on Wednesday.
The new regulations, enforced by NAPP, the Ministry of Finance, and the State Tax Committee of Uzbekistan, are already in effect. According to the document, the monthly payment amount varies based on the type of services provided by the firm, along with a base fee determined for crypto companies at the time of payment.
Under the new guidelines, 80% of the monthly fees collected from crypto users and companies contribute to the country’s budget, while the remaining 20% is allocated to the NAPP’s treasury. As Forklog reported, failure to comply with the new fee structure may result in penalties, including license suspension.
NAPP Partners with Tether to Enhance Crypto Market
Through these modifications, the NAPP aims to enhance state revenue from the crypto sector, projecting a doubling of revenue once the new structure is implemented. However, the agency assures that the updated pricing structure will not jeopardize the financial stability of industry service providers. The new fee system is scheduled to take effect on June 20, three months after its official announcement.
In addition to these fee adjustments, the NAPP recently partnered with stablecoin issuer Tether. The memorandum of understanding between the two parties aims to foster blockchain-based innovations in Uzbekistan, including stablecoins and digital asset tokenization. While specific details of the partnership remain undisclosed, Tether intends to work with Uzbekistan’s regulators to establish a legal framework for crypto assets in the country.
