The Central Asian country Uzbekistan is looking forward to wider their crypto regulation. So the government of Uzbekistan has passed a decree signed by President Shavkat Mirziyoyev.
For those who are not familiar with the decree, it means an order usually has the force of law and is issued by the Head of the state according to some specific procedures.
This document especially has defined the meanings of crypto-related things. Mostly the document has provided definitions for crypto assets, exchange, and mining and also includes a main regulatory body for cryptocurrency.
The National Agency Of Project Management under the president of the Republic of Uzbekistan will be the future watcher for countries’ crypto space. However, the National Agency for Project Management has been changed into National Agency for prospective projects(NAPP), especially for the crypto duties.
The main duty of NAPP will be to create policies for the crypto space and to protect the investors and their rights. It will also create and introduce a Blockchain mechanism to the public and government sector and will regulate money laundering, and terrorist finance activities.
The decree has defined crypto assets as property rights that portray a combination of digital records in a distributed ledger that shows the value and owner. From Jan 1, 2023, onwards Uzbekistan’s citizens and companies will be permission granted to buy, sell and exchange cryptocurrencies through service providers. The crypto service providers will be also listed and maintained under government laws.
So all the entities which fall in the exchange and service-providing category should register as local businesses and gain a license from the government. This belongs to Crypto mining also. Only registered firms will be able to mine crypto. Mining farms will be paying a high electricity payout during peak hours of power consumption.
Uzbekistan legalized cryptocurrency in 2018 but again in 2019, the government banned locals from purchasing cryptocurrencies. With this decree, everything will be changed.