Uzbekistan Government Welcomes Crypto Exchange with New Tax Benefits
September 7, 2018 10:27 am
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Uzbekistan Government to attract digital currency exchanges to set up exchanges within the nation.
On September 2, an order issued by President Mr. Shavkat Mirziyoev gives foreign exchanges various benefits to start operating in the nation. The document says digital currency-related income will not be taxed, licensed exchanges running operations with digital currencies and foreign fiat currencies are not subject to current foreign currency regulation and digital currency exchanges are not subject to the nations securities and exchanges regulations.
Although, foreign entities can obtain a license for a digital currency exchange after they start a subsidiary in Uzbekistan.
Moreover, the terms of getting license may be restrictive: an exchange must have an approved capital of no less than 30,000 times the average minimum salary, which amount to around $700,000; serves to be set up in Uzbekistan; exchanges must use anti-money laundering systems for customers, and they must store customer’s transaction and personal information for at least 5 years.
There are benefits for miners too; the document orders local and federal government officials to give industrial miners utilizing more than 100KwH of power with land without requiring an auction which usually needed to procure land on “specially designated territories.”
The news agency Fergana.ru reported the move comes after the government declared a goal to develop new regulation for digital currency in the nation. In February, the government further announced its announced its plan to build a state-funded innovation center for exploring the possibilities of blockchain technology in the state capital of Tashkent.