Uzbekistan Is Now Legalizing Crypto Exchanges And Encourage The Use Of Cryptocurrency

Uzbekistan wants to boost the market-based economy and for that reason, their government has decided to take initiatives that are favorable to the growing crypto industry.

Uzbekistan, a former Soviet nation, confirmed that it is legalizing crypto exchanges and that is urging for blockchain companies to set up offices in the country. The legalization finally came through after a presidential decree was signed to encourage the use of the blockchain technology and cryptocurrency in the country.

According to the document published by the President of Uzbekistan, the government claims that they will not treat cryptocurrencies as securities. This means that all the laws that are a must for security exchanges, will not apply to crypto exchanges. This doesn’t mean, however, that the crypto trading will be unregulated. Crypto trading will come under new rules that are basically special normative acts.

Foreign legal entities that are set up in Uzbekistan will be able to open cryptocurrency exchanges in the country. They are not liable to pay taxes so any revenue gathered from cryptocurrency will be untaxable which will deliver on the promise that crypto assets are records of data stored on the blockchain that have value and owner.  Of course, when you see that something is free almost always means it’s not.

Foreign entities that want to open a crypto exchange will have to own an authorized capital in order to support at least 30,000 minimum wages when they apply and 20,000 minimum wages to be reserved in a state-backed bank. Also, the state requires that crypto-exchanges must base their servers in Uzbekistan and must store all transaction information and user identification for a period of five years.