Uzbekistan Entices More Crypto Businesses by Lifting Crypto Taxes

The Uzbekistan administration is luring crypto companies to set up businesses in the country.

In a press conference held on 2nd September 2018, president Shavkat Mirziyoev promised foreign investors several benefits of investing in his country. The head of state made it clear that crypto-based earnings will be exempted from taxes, legalized businesses partnering with cryptocurrencies and external authorized currencies will not subject to the nation’s securities and trade limits.

Further Requirements for the Investors

Nevertheless, external crypto companies are required to obtain a working licence after opening branches in Uzbekistan. Besides, the conditions for obtaining these warrants might be a bit deterring since an investor must have a working capital of 30,000 times their average minimum worthy, totalling to almost $700,000, must have branches in Uzbekistan, crypto transactions must employ anti-money laundering measures for customers and they must keep customer activities and data for a minimum of five years.

How will Miners Benefit?

The new regulations also promote the welfare of miners. The regulation requires the central and local governments to employ industrial miners using over 100kwh of power with land minus the need for an auction on “specifically designated territories.”

The order comes weeks after the regime declared its interest in creating new guidelines for digital currencies in the nation. Early 2018, the government also stated its interest in inventing a state-funded invention centre for exploiting the capacity of blockchain in the city of Tashkent.

Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.
John Makori is a cryptocurrency writer with background in IT and journalism. He has lived in different countries, and settled in Canada. He has more than 4 years of experience working as a journalist with interest in Bitcoin and Cryptocurrencies. He’s passionate about learning Blockchain technologies’ potential to reshape all aspects of our lives. He joined TheOofy as a writer.