Reports said that the Republic of Uzbekistan continues to progress with local cryptocurrency regulations, with Uzbek President Shavkat Mirziyoyev issuing a new decree regulating the industry.
It has been reported that the new decree instructs a reorganization of a major presidential agency known as the National Agency for Project Management (NAPM). The authority has previously promoted crypto trading in Uzbekistan, proposing to allow residents to conduct all types of crypto trades in 2021.
However, according to the decree, the NAPM will be restructured into a new entity called the National Agency for Perspective Projects (NAPP), responsible for a wide range of crypto regulation-related projects with the mission to adopt a “special crypto regulation regime” in Uzbekistan.
The report said that the agency is required to develop and adopt a unified state policy on crypto as well as ensure investor protection and enforce measures to combat illegal activities like terrorism financing. The NAPP will also initiate and promote projects that apply blockchain and other emerging technologies in public administration and other socio-economic sectors.
Likewise, the NAPP can establish legal conditions for entities using crypto and blockchain tech as well as virtual asset providers including crypto trading and mining firms, industry stores, and others. The agency is also responsible for licensing and supervising virtual asset service providers, which are required to pay a number of state fees.
The document read:
"Participants of the special regime have to pay mandatory deductions to all types of taxes and state trust funds, as well as customs payments for equipment, technological documentation, software [...] imported for their own needs, not produced in the Republic of Uzbekistan [...]"
According to the document, income from salaries by participants of the “special regime” is subject to personal income tax at a fixed rate of 7.5%. The decree also provides comprehensive legal details related to for cryptocurrency mining operations in Uzbekistan.
The document specifically instructs that renewable energy sources like crypto mining will have no licensing requirements:
"Miners that carry out activities using equipment and installations of solar photovoltaic stations, have the right to enjoy benefits related to taxes, customs and other preferences of renewable sources energy in the manner prescribed by legislative acts."
Uzbek President Shavkat Mirziyoyev was re-elected for a second five-year term in October 2021, taking office in 2016 following the death of longtime leader Islam Karimov. Mirziyoyev has adopted a number of initiatives in the crypto industry since assuming the office. In 2018, Mirziyoyev ordered the establishment of a state blockchain development fund aiming to integrate blockchain into public administration projects like healthcare and education.
Thus, Mirziyoyev previously signed a law prohibiting local firms from launching their crypto exchanges in Uzbekistan. The law only provided legal status to crypto exchanges launched by foreign legal entities. Some countries like Russia echoed similar trends in crypto regulation policies in late 2021.