Uzbekistan issues a decree to adopt a special cryptographic framework.

[Wimex]

Once again, the Republic of Uzbekistan speaks out again as far as cryptocurrencies are concerned, moving forward with local cryptocurrency regulations by Uzbek President Shavkat Mirziyoyev.

On Wednesday, he published a decree explaining that it

instructs a reorganization of an important presidential agency known as the National Agency for Project Management (NAPM)

Promoted that residents of Uzbekistan could trade with any type of cryptocurrency in 2021.


The decree also indicated that the new entity called the National Agency for Perspective Projects (NAPP), will be able to establish legal conditions for entities that use cryptographic and blockchain technology, including cryptocurrency mining companies.

It should be noted that the agency also licenses and supervises virtual asset service providers, where they must pay a series of state fees

Participants of the special regime have to pay mandatory deductions to all kinds 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...

These incomes are subject to Personal Income Tax at a fixed rate of 7.5%. What do you think of the new imposed decree and all that it will imply?

Source of information: https://cointelegraph.com/news/uzbekistan-s-president-issues-decree-to-adopt-special-crypto-framework

[fiulpro]

I went through your post and the one thing that I liked about the government of Uzbekistan is the amount of tax that they choose to impose. Choosing 7.5% was rather good, there are countries going as far as 20% which is completely unreasonable but I think considering the laws about how people would be able to trade the cryptocurrencies without any probelms is pretty interesting, since if they recognize the trading legal they would also provide additional security as well. I think they are going to put a positive note on the whole crypto economy in their country and others should also get some inspiration with certain laws banning mining for 2 years they can actually increase their gdp through mining cryptocurrencies if done right.

[Yogee]

I think they are trying to do a lot of things which may be difficult to implement. It's good if the people running the new agency are actually capable.

It looks like they want to control everything from trading to mining from what I read in a separate article.

- They plan to make crypto become "more local" which means no buying or selling on international exchanges. I don't know how the locals would take that since they are probably used to the liquidity of international exchanges like Binance. These local exchanges will be required to retain your personal data for five years.

- It is also said that local exchanges are not allowed to list anonymous coins and they are most likely referring Monero.

- Mining companies are encouraged to used solar energy only and will pay twice the electricity should they connect to the national grid.

https://www.coindesk.com/policy/2022/05/03/uzbekistan-publishes-crypto-regulation-framework-assigns-supervising-agency/

[AjithBtc]

Uzbekistan needs to have control over everything associated with cryptocurrency. Based on the information from the article it looks like the country wants to have a framework that lets mining done in a legalised way. Depending on the power power requirements and the availability the miners will be charged. Another thing it doesn't consider bitcoin as legal tender. It can be used as an exchange commodity/stocks. I don't find this decree issued by the President to make any impact on bitcoin as well among the Uzbekistan cryptocurrency users.

[LeGaulois]

Additional security like what?

It is up to people to be responsible for their own money. It isn't up to a government to tell people how to manage their cryptocurrencies.
When the saying goes "Be your own bank" it also includes, and more specifically, the responsibilities that go with it. If they don't know how to protect their money, they shouldn't even be using cryptos.

7.5% is the average tax rate in this country for something other than their job (which is 23% according to this link) so nothing special about the rate since it's normal to them

Bitcoin was never banned I believe, and people could use it freely. So making it legal doesn't make much difference to them.

In fact, this news isn't really news at all, because there was a decree issued about three years ago saying much the same thing. So nothing new really. On the other hand, both are mainly about collecting taxes and regulating companies (so that they can collect more tax money)