With a Presidential Decree, Uzbekistan has legalized the cryptocurrency exchange platforms nationally. However, the crypto trading platforms in Uzbekistan will have a new licensing regime and will be regulated by the same guidelines as the traditional securities and exchanges.
The decree signed by Shavkat Mirziyoyev, the president of Uzbekistan, emphasizes that the trade of cryptocurrency across Uzbekistan is only allowed under special licenses that will be supervised by the National Agency for the Management of Projects, an organism that is under the jurisdiction of the national government.
Each cryptocurrency exchange platforms in Uzbekistan must have an authorized capital of 30 thousand minimum salaries at the moment of submitting the licensing application. It must also set aside 20,000 minimum wages in a national bank account as additional funds for possible losses.
Uzbekistan legalized cryptocurrency exchange platforms nationwide and also debated crypto mining
Regarding security, the crypto trading platforms are obliged to use an encryption system set up in Uzbekistan, which reinforces the security of user passwords and the storage of assets. In addition to that, to operate, international crypto companies will have to own a local subsidiary, legally recognizable under the name of “crypto exchange.”
The platforms will also have to publish their updated exchange rates according to the supply and demand of the market, and for around five years they will have to safeguard all the information of the clients, of the transactions and even of the received correspondence. In this sense, these will be subject to the regulatory acts of the securities industry and traditional exchanges in preventing criminal activities and terrorist financing.
Besides legalizing cryptocurrency exchange platforms, the government recognized cryptocurrencies as a “set of registries” that had an added value and an owner. Also, the crypto mining industry was discussed by the government of Uzbekistan, and although it was not a widely debated topic, it is known that the state energy subsidiary, Uzbekgidroenergo, would be in charge for releasing electricity plans for mining.