The leadership of the Azerbaijan Crypto Chamber, headed by the president of the chamber, Rufat Aliyev, took part in the international high-tech summit InMerge, which is taking place these days in the capital of Azerbaijan, Baku. At the summit with the directors of leading companies in Azerbaijan, the legislative aspect of the cryptocurrency industry in Azerbaijan was discussed in large numbers.

In the photo are the presidents of the largest banks in Azerbaijan, who are waiting for a license from the central bank to trade cryptocurrency.

Taking into account the important aspects of the negotiation process, the Azerbaijan Cryptographic Chamber came to the following conclusion: Any physical or legal person must analyse the Cryptocurrency laws of the Republic of Azerbaijan before starting a cryptocurrency activity (block chain technology, bitcoin mining, etc.). With respect to the cryptocurrency laws of Azerbaijan, at the outset, it must be noted any national or foreign person can involve in cryptocurrency activity, namely bitcoin mining in Azerbaijan. This, however, does not amount to implying that crypto money is a legal tender in Azerbaijan.

Regarding specific issues related to the Cryptocurrency laws of the Republic of Azerbaijan, it must be noted that it is a novel and unregulated matter. Blockchain technology and cryptocurrency concepts are modern in legal field and in this regard, there is no direct regulatory act in this field. However, the concept of cryptocurrency is not completely unknown to the legislation of the Republic of Azerbaijan. Thus, the legislation refers to this concept in an only one piece of legislation and determines a specific related matter, which is specified as “Regulations on margin trading”, approved by the Central Bank of Azerbaijan. Article 7.2 of this regulation and reads: “the maximum amount of the credit provided by the investment company to its customers under the contract for difference is determined as follows: … 7.2.4. 2:1 on CFDs whose underlying asset is cryptocurrency (digital currency).”

To be continued.