The Republic of Uzbekistan has taken significant steps to enhance its regulatory framework and oversight in the field of crypto-assets circulation, UzA reported. These efforts are based on the comprehensive law "On making additions and amendments to certain legal documents of the Republic of Uzbekistan aimed at improving the system of licenses and authorization procedures in the field of crypto-assets circulation," which was signed into law by the country's head on September 6, 2023.
The primary objectives of this law are as follows:
Strengthening Regulatory Oversight: The law empowers the National Agency for Prospective Projects to assume a central role in regulating crypto-assets within the country. This move is essential for ensuring that crypto-related activities are conducted in a transparent and responsible manner, fostering investor protection and market integrity.
Authorization Requirements: Individuals and entities involved in specific crypto-asset activities, such as mining, crypto-depository services, and crypto-store operations, are now mandated to obtain authorization documents. This requirement enhances accountability within the crypto industry and promotes adherence to regulatory standards.
Penalties for Unauthorized Mining: The law imposes strict penalties on those engaging in cryptocurrency mining without the necessary authorization documents or by using forged documents. The fine, equivalent to 150 times the base calculation amount, serves as a deterrent against unauthorized and potentially illegal mining activities.
State Duty for Service Providers: Notably, the law introduces a state duty for legal entities seeking licenses to operate as service providers in the field of crypto-assets circulation. The authority to determine the specific amount and payment procedures for this state duty has been delegated to the National Agency for Prospective Projects. This financial contribution from crypto-service providers will contribute to the sustainability and effective regulation of the crypto industry.
These changes prioritize the protection of investors, the prevention of illicit activities, and the responsible growth of the crypto sector.
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