Business

Dennis Wafula

Uzbekistan president signs decree legalizing crypto trading

The cryptocurrency community in Uzbekistan has received a new presidential decree that legalizes cryptocurrency trading, paving the way for the licensing of crypto exchanges. According to local reports, the move is aimed at increasing regulated cryptocurrency activities in the country.

The decree was signed by President Shavkat Mirziyoyev in order to allow cryptocurrency operations in the country. The decree, dubbed as “On measures to organize the activities of cryptocurrency exchanges in Uzbekistan,” states that an organization or individual providing an electronic platform for the exchange, purchase or sale of digital assets, will be recognized as an exchange.

The decree introduces a licensing regime for crypto exchanges. In the documents, the exchanges will need to obtain a license from relevant authorities before they can operate in Uzbekistan. Aside from a license, crypto exchanges are also required to meet certain requirements set by the authorities—including an authorized capital equal to at least 30,000 minimum wages on the day they file their application. Exchange operators are also required to have an equivalent of at least 20, 000 minimum wage reserved in a separate account with one of the commercial banks in the country.

Exchanges in Uzbekistan will also need to develop an operational electronic cryptocurrency trading system using servers located in the country. The platform will have to publish exchange rates based on the ratio between supply and demand.

Third, the exchanges will have to store transaction records, user information, and other necessary data for a period of five years.

The document has more good news to crypto exchanges in the country. The decree also allows cryptocurrency exchanges to get remuneration for their services. It also allows them to determine procedures for charging fees. The decree also allows the exchanges to collect crypto assets from both locals and foreigner in exchange for national and foreign fiat currencies.

The decree comes a few months a decree was passed to allow the government to start regulating the cryptocurrency market and all related activities. According to reports, the Decree №ПП-3832 was aimed at setting a legal framework for blockchain innovation, cryptocurrency circulation and regulation of mining activities.

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