Moneycontrol
Last Updated : Sep 07, 2018 09:47 PM IST | Source: Moneycontrol.com

Uzbekistan looks to lure crypto exchanges with tax sops

However, foreign exchanges would get a license for a cryptocurrency exchange only after they open a subsidiary in Uzbekistan.

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The government of Uzbekistan is in the process of inviting cryptocurrency exchanges to start their operations in the country. President Shavkat Mirziyoev has stated in an order, passed recently that there would be a number of benefits for foreign exchanges, who would commence operations in Uzbekistan.

As reported by Coindesk, referring to the order, cryptocurrency-related income would not be taxed, licensed exchanges with cryptocurrencies and foreign fiat currencies would not be subject to existing foreign currency regulations.

The order was issued months after the government announced a goal to develop new regulations for cryptocurrencies in the country. According to the news agency Fergana.ru, in February, the government announced its intention to create a state-funded innovation centre for the introduction of blockchain in Tashkent, the state capital.

There are benefits for miners also. Federal and local government officials should provide land without auction on "specially designated territories” to industrial miners using more than 100 kWh of power.  An auction is a normal procedure required in order to acquire land.

However, foreign exchanges would get a license for a cryptocurrency exchange only after they open a subsidiary in Uzbekistan. The terms of getting a license may be restrictive in several ways. An exchange must have an authorised capital of a minimum 30,000 times the average minimum salary, which is roughly $700,000. The servers must be located in Uzbekistan.
First Published on Sep 7, 2018 04:16 pm
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