The President of Uzbekistan signs legislative amendments to include cryptocurrency licenses.
Licenses will cover crypto exchanges, mining pools, and cryptocurrency storage and mining activities.
Once licensed, these legal entities will be subject to taxation.
In a landmark decision, the President of Uzbekistan has signed legislative amendments that officially bring cryptocurrency into the country’s legal framework. According to a report by Forklog, the new amendments include the introduction of cryptocurrency licenses for a range of activities. This includes crypto exchanges, mining pools, and cryptocurrency storage and mining activities.
According to Forklog, the president of Uzbekistan signed legislative amendments that include cryptocurrency licenses, including crypto exchanges, mining pools, cryptocurrency storage and mining activities. Once licensed, the legal entity must pay taxes. https://t.co/GFhgiS3gUQ
— Wu Blockchain (@WuBlockchain) September 10, 2023
This move is groundbreaking for the Central Asian nation, representing a significant step towards the institutionalization of cryptocurrencies. It also brings these crypto activities under the tax regime; once licensed, the legal entities engaging in these activities are obligated to pay taxes.
The legislation aims to provide a more structured and secure environment for both businesses and investors in the crypto sector. The introduction of licenses will likely lead to greater oversight, helping to curb fraudulent activities and offering a more transparent system for users.
The newly signed amendments could potentially attract international crypto businesses to Uzbekistan, given the nation’s relatively low electricity costs, which is particularly advantageous for mining activities. Furthermore, it positions Uzbekistan as one of the few countries in its region with clearly defined crypto regulations, giving it a competitive advantage in attracting blockchain and crypto enterprises.
As for the taxation aspect, it remains to be seen how the government will structure tax rates for these newly licensed entities. Nonetheless, the tax inclusion is expected to provide an additional revenue stream for the government, while simultaneously legitimizing crypto activities within the country.
In conclusion, Uzbekistan’s President’s decision to sign these legislative amendments is an encouraging development for the global crypto industry. By bringing crypto under a legal and tax framework, Uzbekistan is taking robust steps toward institutional acceptance and utilization of cryptocurrencies.
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