Overview of the Article
- Uzbekistan has collected over $310,000 in revenue from the crypto sector.
- Crypto companies have to pay monthly fees for their activities, with exchanges such as Uznex paying more than $10,000 a month.
- Individuals and organizations related to crypto transactions are subject to taxation in Uzbekistan.
Government Revenues from Crypto Sector
Uzbekistan is receiving a growing amount of revenues from its cryptocurrency industry. According to the National Agency of Perspective Projects (NAPP), a body subordinated to the president, licensed crypto firms have paid 3.5 billion Uzbekistani som (more than $310,000) to the budget so far this year. This increase in budget receipts is attributed to the licensing regime and introduction of fees for crypto companies.
Monthly Fees Paid by Crypto Companies
Since October 2022, providers of cryptocurrency services are required to pay fixed monthly fees for their activities. The rates vary between different types of companies. For example, cryptocurrency exchanges such as Uznex have to pay more than $10,000 each month while smaller “crypto shops” need only around $500.
Taxation on Crypto Transactions
Operations with digital assets are not taxed in Uzbekistan but individuals and organizations involved in crypto transactions are subject to taxation even if they are non-residents or based outside of the country. Furthermore, miners who register with NAPP are relieved from taxation as well.
Regulation on Cryptocurrencies
In April 2022, cryptocurrencies were regulated with a presidential decree issued two months earlier which allowed citizens of Uzbekistanis to buy and sell coins on domestic exchanges starting November 2021 . In August 2022 , authorities attempted restrict access online trading sites based outside the country .
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The government of Uzbekistan has been able impose fees on local businesses operating within its borders which has resulted an increase in budget revenue being collected from the cryptocurrency sector . The current regulations also stipulate that individuals and organizations related crypto transact ions must be taxed even if they do not reside or operate within country’s borders .