INTRODUCTION TO THE CRYPTO BUSINESS IN UZBEKISTAN
Crypto-assets activity is one of the most important directions of development of digital economy in the Republic of Uzbekistan.
The Government of the Republic of Uzbekistan is taking large-scale measures to create conditions for the development of the digital economy by improving the investment environment, legal and regulatory framework for the digital economy.
Investment climate
Today, the Government of the country has already launched a number of incentive measures addressed to create a positive investment climate for crypto-assets activities, some of them are stated below:
- crypto-assets activity is regulated by special regulations;
- crypto-assets activity is not a subject of taxation, and income received from such activity is not included in the taxable base for taxes and other mandatory payments;
- currency operations related to the crypto-assets activity is not subject to the norms of the legislation on currency regulation.
Regulation
By the Decrees1 of the President of the Republic of Uzbekistan, the National Agency of Perspective Projects of the Republic of Uzbekistan is an authorized body regulating the crypto-assets activity of the country.
According to the Decree[2] a crypto-asset is a property right representing a set of digital records in a distributed data register, which has a value and an owner. Crypto-asset activity is a subject to licensing.
It should be noted that according to the Order, the license may be obtained only by legal entities -registered of the Republic of Uzbekistan.
The following crypto-asset activities are presented in the territory of the Republic of Uzbekistan:
crypto-exchange;
an organization providing an electronic platform for buying, selling and (or) exchanging crypto-assets.
maining-pool;
an organization providing an electronic platform for consolidation of computing power to support the process of mining.
crypto-depository;
crypto-depository - an organization that provides an electronic platform and (or) a set of technical and software tools to provide services for the issuance of crypto-assets, their primary placement and storage.
crypto-store.
crypto-store - an organization providing an electronic platform and (or) a set of technical and software tools for rendering services on buying and (or) selling crypto-assets.
License main requirements
1. availability of an electronic platform and (or) a set of technical and program means placed on servers located on the territory of the Republic of Uzbekistan;
2. availability of the formed authorized fund (capital) in the amount of not less than five thousand basic calculation value[3] (170 000 000 sum) in the form of cash as of the date of application submission, of which three thousand are reserved on a separate account in a commercial bank of the Republic of Uzbekistan.
It is important to note that the authorized fund (capital) of service providers shall be formed exclusively from monetary funds and other property of its founders.
The use of funds received on credit or under pledge and other attracted funds for the formation of the authorized fund (capital) of service providers is not allowed.
The availability of the formed authorized fund (capital) shall be confirmed by a certificate of a commercial bank on the deposit of funds for the formation of the authorized fund (capital).
3. certificate (obtained from the relevant authorized body of a foreign state, legalized or with apostille), on absence of criminal record for crimes related to:
- participation (or suspected of participation) in terrorist activities or proliferation of weapons of mass destruction;
- economic crimes;
- criminal activity;
- financing, organized crime;
- illicit drug trafficking corruption and information technology.
*A complete list of requirements depends on the type of activity.
License fee
Legal entities obtaining a license to carry out activities of service providers in the sphere of crypto-asset turnover shall pay a state duty in the amount of:
- crypto-exchanges - 73 400 BCV (24 956 000 000 Sum);
- maining-pool - 3000 BCV (102 000 000 Sum);
- crypto-depository - 7000 BCV (2 380 000 000 Sum);
- crypto-shop - 3700 BCV (125 800 000 Sum).
Important to note
✓ The license shall be issued separately for each type of activity.
✓ The license is issued for an unlimited period of time.
✓ The right to carry out the activities arises from the moment of issuance of the license.
✓ Transfer of the license to another legal entity is prohibited.
Fees for carrying out activities in the sphere of turnover of crypto-assets:
Legal entities carrying out the crypto-asset activities in the territory of the Republic of Uzbekistan are subjects to following state fees:
- crypto-exchange - 740 BCV (251 600 000 UZS);
- mining pool - 100 BCV (34 000 000 UZS);
- crypto-depository 5 BCV (1 700 000 UZS);
- crypto-shop 185 BCV (62 900 000 UZS).
The fees are paid on a monthly basis from the date of obtaining a license in accordance with the established procedure.
At the same time, if a license is obtained before the 25th day of the current month, the fee is paid in full for that month, and if a license is obtained after the twentieth day of the current month - from the first day of the next month.
In case of suspension or termination of the crypto-assets activities, the calculation of the fee is suspended from the first day of the following month.
Esplora Legal has a great experience in obtaining licenses for crypto-asset activities. Our company can provide legal advice and support at any stage of work in the field of crypto-asset activities.
[1] Decree of the President of the Republic of Uzbekistan dated July 27, 2017 № PP-3150 "On the organization of the activities of the National Agency for Advanced Projects of the Republic of Uzbekistan.
[2] Decree of the President of the Republic of Uzbekistan, dated 03.07.2018 No. PP-3832.
[3] Basic calculation value - 1 BCV - 340000 Sum UZS.
