While digital asset transactions are not taxed in Uzbekistan, the government is receiving a growing amount of revenue from the industry. The increase in budget revenue has been attributed to the licensing regime and the introduction of fees for cryptocurrency companies.
Crypto Exchange in Uzbekistan pays more than $10,000 a month to the state coffer
Licensed crypto companies have paid 3.5 billion Uzbek som (more than $310,000) to the budget over the course of 2022, Uzbekistan’s regulatory authority responsible for supervision in the sector revealed during a press conference, quoted by the news outlet. of cryptocurrencies Forklog.
In it instructionsthe National Agency for Perspective Projects (SCARCE), a body subordinate to the president, announced the results of its activities. The officials said the government has been able to raise the money thanks to the revamped licensing system and the imposition of fees for companies working with digital assets.
Five crypto platforms are currently authorized to legally operate in the country and have paid said total. These are the state-controlled exchange Uznex and four smaller exchanges: Crypto Trade NET, Crypto Market, Crypto Express, and Coinpay.
Since October, crypto service providers in Uzbekistan have to pay fixed monthly fees for their activities. These range from over $10,000 for cryptocurrency exchanges like Uznex to around $500 for the smallest trading platforms, also known as “cryptocurrency shops.”
At the same time, the operations of natural and legal persons related to crypto transactions are subject to taxation in the Central Asian nation, even when they are carried out by non-residents and companies based in other jurisdictions, according to current law.
However, the Tashkent government has previously warned citizens of Uzbekistan to avoid unlicensed exchange services. In August 2022, it attempted to restrict access to online trading sites located outside of the country. Uzbekistanis were allowed to buy and sell currencies on the national exchanges in November 2021.
NAPP also noted that 80% of the fees paid by licensed crypto companies go to the state budget, while the remaining 20% is transferred to their own accounts. In late June 2022, the agency introduced registration requirements for miners that are also tax exempt. Cryptocurrency, mining, and trading were regulated by a presidential decree issued two months earlier.
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