Monthly Fees Mandated on Crypto Firms in Uzbekistan

CNBC’s Jim Cramer Warns Investors to Sell Their Crypto Holdings
  • The law by the country’s primary crypto regulating authority is now in effect.
  • The lowest cost, $135, will go to the custodial service providers.

Uzbekistan authorities recently passed a bill mandating cryptocurrency corporations pay into a separate fund. The law, proposed by the country’s primary crypto regulating authority, is now in effect. After it was duly registered with the Ministry of Justice.

The law stipulates that approved crypto firms must pay the fees every month, and it was drafted by the National Agency of Perspective Projects (NAPP) under the President of Uzbekistan. The various types of cryptocurrency exchanges have been assigned different rates.

Suspension of License

According to a report by Russian crypto news site Bits.media, the maximum tax would be 120 million Uzbekistani soum (nearly $11,000) for crypto exchanges, while cryptocurrency merchants will pay roughly $540.

At the present currency rate, the monthly tax for individual miners is expected to be roughly $270, while mining pools will be required to deposit a little over $2,700 to the government. The lowest cost, $135, will go to the custodial service providers. If the fee isn’t paid within a month, the license will be revoked. 

Part of the legislation states:

“Failure to pay the fee within one month constitutes grounds for suspension of the license. If the company does not pay the fee for two months within a year, the license may be canceled.” 

All payments will be reduced by 20% to go to the NAPP, with the remaining 80% going to the government.

Uzbek officials have been quite busy this year trying to figure out how to control their rapidly expanding cryptocurrency market. President Shavkat Mirziyoyev of the Central Asian republic of Uzbekistan passed a proclamation in the spring enlarging the regulatory framework for the digital currency industry. It defined cryptocurrency, trade, and mining under the law and gave the NAPP regulatory authority.

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Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.