By the decree of the President of Uzbekistan Shavkat Mirziyoyev, the National Agency for Project Management was transformed into the National Agency for Advanced Projects (NAPPA). It will become the main regulator in the sphere of cryptocurrency turnover.
The Agency will deal with:
development and implementation of state policy, ensuring compliance with the rights of investors in the sphere of cryptocurrency turnover;
promotion of projects for the introduction of distributed registry technology in public administration;
development of measures to counteract the legalization of proceeds from crime, the financing of terrorism and the proliferation of weapons of mass destruction through cryptocurrencies.
The NAPPA regulation contains definitions of crypto assets, mining, crypto exchanges and mining pool.
According to the document, a crypto asset is a property right representing a set of digital records in a distributed data registry that has value and owner.
From January 1, 2023, citizens and legal entities of Uzbekistan will be able to carry out transactions for the purchase and sale or exchange of cryptocurrencies exclusively through service providers.
These include exchanges, mining pools, crypto depositories and crypto stores. They must register a legal entity in Uzbekistan and obtain a license (or certificate in the case of miners) of the agency.
The procedure for granting licenses for service providers and certificates for miners is currently under development, their approval is planned in the near future, NAPPA told ForkLog.
Transactions of individuals and legal entities related to the turnover of cryptocurrencies are not subject to taxation.
The use of crypto assets on the territory of Uzbekistan as a means of payment or acceptance of payment is still prohibited.
Mining can be carried out exclusively by a legal entity registered in NAPPA. In the case of connection to the unified energy system, a double coefficient is applied to the established tariff to pay for electricity for the extraction of cryptocurrencies, during peak periods, allowances established by the Cabinet of Ministers are added to it.
Regulation introduces a ban on the implementation of hidden mining, as well as the extraction of "anonymous crypto assets" and transactions with them.
NAPP also establishes a special regulatory sandbox regime, within which legal entities will be able to implement pilot projects in the field of cryptocurrencies.
Sandbox participants are exempt from all types of taxes and mandatory contributions to state trust funds, as well as customs duties, except for customs duties, for imported equipment or components, software and documentation.
Salaries of employees of similar companies in this area will be subject to personal income tax at a rate of 7.5%.
Within the sandbox, activities related to the use of cryptocurrencies as a means of payment are also prohibited.
The term of implementation of pilot projects under the special regime is no more than three years.
Recall that in November last year, Uzbekistan made changes to the provisions of cryptocurrency trading on licensed exchanges, giving residents of the country the opportunity to trade digital currencies.