Uzbekistan Creates Good Conditions For Crypto Development With Tax Free

Key Points:

• Uzbekistan is crafting rules for crypto miners, pools, and tokens, aiming to nurture a regulated crypto market.
• The NAPP oversees licenses, works on mining and token rules, and collaborates with authorities.
• It is driving NFT projects, anti-money laundering efforts, and exempting crypto from taxes, shaping the nation’s crypto landscape.

Uzbekistan has unveiled ambitious plans to establish a regulatory framework for cryptocurrency miners, mining pools, and token issuance, marking a significant step in shaping the country’s digital asset landscape.

In an exclusive interview with ForkLog, Vyacheslav Pak, the First Deputy Director of NAPP, provided insights into forthcoming legislative initiatives, shedding light on aspects like mining regulations and leveraging tokens to attract investments.

Five specialized legal acts are set to cover various aspects, from licensing cryptoasset exchanges to participant registration within special regulatory regimes.

Driving these initiatives is the National Agency for Perspective Projects (NAPP), which has been designated as the regulatory authority for this sector. NAPP is responsible for issuing licenses, granting permits, and overseeing specialized companies’ activities.

The NAPP team comprises 45 professionals, spanning IT experts, legal advisors, international anti-money laundering specialists, and individuals well-versed in the technical underpinnings of crypto assets.

Pak highlighted several upcoming legal endeavors, including the incorporation of mining within licensing procedures, revising mining conditions to include alternative energy sources, and introducing administrative and criminal penalties for unauthorized cryptoasset transactions.

Uzbekistan’s efforts are noteworthy in nurturing a crypto-friendly environment. The country already boasts registered participants under a special regulatory sandbox mode, showcasing innovative projects like NFT certificates and pioneering crypto initiatives.

In a pioneering move, Uzbekistan exempts crypto asset operations from taxation, with the generated income falling outside the taxable domain. The collected fees, reaching over 6 billion sums (approximately $494,000), contribute to the state budget while supporting NAPP’s operational capabilities.

As Uzbekistan continues its dynamic journey toward a regulated and vibrant crypto landscape, the world watches closely to see how these developments shape the nation’s economic and technological future.

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