Shavkat Mirziyoyev, Uzbekistan President has signed a decree that welcomes crypto exchanges to begin crypto trading in the country. This decree legalizes the activities of crypto exchanges. The document introduces a number of requirements that these exchanges need to meet in order to be able to operate in Uzbekistan. It also introduces a licensing regime for trading platforms.
According to the decree, an organization that offers an electronic platform for the exchange, as well as facilitates selling and purchasing of crypto assets will be recognized as a cryptocurrency exchange in the country. Crypto assets as defined in the decree are a set of records in a blockchain that has owner and value attached to it.
The circulation of these assets and the activities of the trading platforms as per the decree will be regulated with special normative acts. It won’t be however covered by the legislation that presently applies to the activities of traditional exchanges and securities.
The decree also mentions that the license required for carrying out crypto exchange trading activities will be issued only to foreign legal entities which have other enterprises or established subsidiaries in Uzbekistan.
The decree also has benefits for crypto miners. The document orders the local and federal government officials to provide industrial miners using more than 100 kWh of power with land without requiring an auction on specially designated territories.
The government had earlier announced its plans of developing new regulations for cryptocurrencies in Uzbekistan. The government also announced in February this year its intention of creating a state-funded innovation center for exploring blockchain opportunities in Tashkent, the state capital, as per the CoinDesk report.
The decree entails a list of mandatory requirements that companies which are applying for a license in Uzbekistan to trade cryptocurrencies are obliged to meet. These companies need to have an authorized capital that amounts to at least 30,000 minimum wages on the day of filing the application, as mentioned in the Bitcoin News report.
The decree needs the applicants to build an operational electronic crypto trading system using servers that are located in the Republic of Uzbekistan. These platforms are required to follow certain rules for trading and publish exchange rates that are based on the demand and supply ratio.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]