Uzbekistan is not a country most people associate with cryptocurrency activity. That situation is bound to change fairly soon, thanks to a new decree being signed by Shavkat Mirziyoyev, the country’s President. The decree focuses on cryptocurrency activities, the lack of taxation, and mining efforts taking place in this neck of the woods.
A Positive Development for Uzbekistan
Although with this latest step forward Uzbekistan will not become a global crypto powerhouse overnight, it has to be said that the nations regulatory ecosystem is definitely changing for the better. After a thorough research process involving these new technologies, the local government has decided to issue a new decree which paves the way for legalizing blockchain technology as well as many other initiatives revolving around cryptocurrency.
President Shavkat Mirziyoyev signed the decree on July 3, 2018. The document contains guidelines regarding the future of cryptocurrency activity as well as the country’s intentions to remain open-minded towards Bitcoin and other similar currencies. Officials in Uzbekistan acknowledge there is a lot of potential associated with cryptocurrencies, yet the industry needs a legal framework to operate in.
What About Taxation?
One of the primary topics to be tackled revolves around taxation of cryptocurrency proceeds. Uzbekistan will not tax income gained from cryptocurrencies, nor any profits earned from trading or other activities pertaining to cryptocurrency. That is a rather unusual decision, considering other countries mainly focus their attention on taxing cryptocurrency earnings first and foremost.
For cryptocurrency exchanges and other service providers, obtaining a license will be a mandatory requirement. That in itself is on paper how most other countries attempt to regulate the cryptocurrency industry as of now.
It is good to see that the Uzbeki government acknowledges that both cryptocurrency and blockchain are here to stay. As per the defined roadmap, authorities will examine use cases for both technologies moving forward so that a clear plan of action can be created by January 2021.
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