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Uzbekistan: cryptocurrency finds another haven

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Just like several other countries, Uzbekistan is now taking steps into the field of virtual currency. It is proceeding in the direction that would let virtual currency be a more prominent sector in the country. Uzbekistan has had a series of ups and downs as far as its economy is concerned, that is, it has had to make several changes in the financial system over a period of time. However recently, measures have been taken to ensure that cryptocurrency thrives in the country. It has granted legalization to the cryptocurrency and blockchain technology that would ensure that there are better opportunities as far as this sector is concerned.

A key feature of this decision by the government of Uzbekistan is that it will define cryptocurrency is way different from the manner in which it is defined by the several other countries. That is, it will not consider virtual currency as a security and hence there will not be excessive limitations which have to be placed on the sector and its various entities. Uzbekistan is making sure that there is an immense convenience in the economic sector when it comes to the adoption of this nascent field. The government is ensuring that there are very fewer hurdles in the field of cryptocurrency. This does not mean that a completely free reign would be given to those in the sector. A whole new set of rules will be applied. However, these rules will not be hard on the exchanges and as far as those belonging to other countries are concerned, the foreign entities will not be taxed and the transactions will be defined as a set of records on the blockchain, however, foreign entities will have to have enterprises in the country to open the exchanges.

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However, not everything is as positive as it looks for the various exchanges because they will have to follow certain rules. This is to say that they will have to base their servers in the country. They also must prove that they have the ability to pay wages of 30000 as a minimum amount moreover, the exchanges also have to provide the information related to the consumers if they want to establish trade in the country. Not just the crypto exchanges, the government of Uzbekistan has also started supporting crypto mining and has stated that all that is required for the operations of crypto mining to take place will be provided in the country. Basically, there is enhanced legitimacy that has been provided by the government for the establishment of the sector of cryptocurrency.

Kavya Lakhani

Kavya is one of the integral members of the CryptoNewsZ Journalists team. She manages the team of correspondents and researches for the platform. She holds a master's degree in Journalism and has cryptocurrency trading experience as well. She constantly follows the cryptocurrency ecosystem with a passion for decentralized fin-tech. You can also mail her at [email protected] to discuss anything related to her reports.

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