Country overview

#76

Uzbekistan

Country stats

Rating Points

145

This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.

Crypto Penetration

1.4%

Estimated percentage of crypto users out of the country's total population based on public data.

Legal Entities

Number of crypto companies registered in the country based on regulator data if available or other types of public data.

Regulation Points

An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.

Amount of crypto users

488 600

Total amount of crypto users out of the country's total population based on public data.

Taxation points

This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.

Market volume points

91.3

A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.

Status of crypto

Legally allowed

General status of cryptocurrency regulation in this jurisdiction.

Crypto payments

Ban

The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.

Security Level

Moderate danger

The overall level of security in a given country based on open data.

Crypto Salaries

Ban

The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.

Business Climate

Medium

Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.

Stablecoin Regulation

None

This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.

Bad Factors

This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.

Types of licenses

Mining

This field indicates jurisdictions where mining requires a special license.

Crypto-to-crypto

This license type allows VASP to provide legal exchange from one cryptocurrency to another.

Crypto-to-fiat

This type of license regulates the exchange from cryptocurrency to fiat.

Cryptofund

This indicator means that investment funds, trusts, and crypto funds can get regulator approval to provide their activity in the country.

Good

Medium

Bad

intro

Uzbekistan has exempted cryptocurrencies from taxation. It has a regulation framework for crypto companies. However, the practice of how this regulation operates has yet to be fully defined.

Security level

According to our rating, Uzbekistan has a moderate danger security level. The jurisdiction has 68.7 points (from 100) for safety level in Numbeo crime rating (1). Homicide level (2) is 1.4 per 100,000 inhabitants a year.

Crypto Payments

Crypto payments are officially banned (3) as a part of new crypto regulation.

Crypto Salaries

Since crypto payments are banned in Uzbekistan, crypto salaries are forbidden, too.

Legal

Cryptocurrencies in Uzbekistan are regulated (4) by the National Agency for Advanced Projects based on Presidential Decree No. UP-121 of April 27, 2022. Also, there are other legal acts regulating crypto operations in the country. You may see the complete list under the toggle below.

Another legal act

Decree of the President of the Republic of Uzbekistan of 3 July 2018, No PP-3832 "On measures to develop the digital economy in the Republic of Uzbekistan"

Decree of the President of the Republic of Uzbekistan of 2 September 2018, No PP-3926 "On measures to organize the activities of crypto exchanges in the Republic of Uzbekistan."

Decree of the President of the Republic of Uzbekistan No. PP-3927 of 2 September 2018 "On the formation of the fund to support the development of the digital economy Digital Trust."

Regulations on the procedure for licensing crypto exchanges (Order of the National Project Management Agency under the President of Uzbekistan No. 16 dated 21 January 2019)

Regulations on Crypto Exchange Trading (Order of the Director of the National Project Management Agency under the President of Uzbekistan No. 172 dated 6 December 2019)

Regulations on the procedure for licensing the activities of service providers in the field of crypto-asset turnover (Reg. No. 3380, dated 15 August 2022)

Regulations on the implementation of crypto shop activities (Reg. No. 3395 dated 31 October 2022)

Here is the official document (5) from NAPP that describes licensing procedures in Uzbekistan.

Tag	Type of Activity	Regulator
#cryptotofiat	Сrypto Exchange (криптомагазин)	NAPP
#cryptotocrypto	Crypto Broker (криптобиржа)	NAPP
#wallet	Custodian (криптодепозитарий)	NAPP
#ICO/STO	N/A
#cryptofund	N/A
#mining	Mining pool	NAPP

There are different types of licensed crypto entities in Uzbekistan, which include:

Crypto exchange

Crypto broker

Crypto custodian

Mining entity

The NAPP register (6) now includes ten entities: 1 platform, one wallet, and eight exchanges.

Based on BitsMedia (7), Uzbekistan also allows mining, but only for licensed legal entities that use it for renewable energy. Since 1 January 2023, crypto operations have been allowed only through entities licensed in the country.

Taxation

Tax name	Index
PIT tax Min	0
PIT tax Max	0
Corporate tax (CIT)	0
Min Individual CGT (for crypto)	0
Max Individual CGT (for crypto)	0
Wealth tax Min	0
Wealth tax Max	0
Mining tax	0

According to BitsMedia (8) currently all entities licensed by NAPP operate by regulatory sandbox regime. This regime exempts licensed crypto entities from any taxation, сustom duties. There is only PIT for employees with 7,5%. The tax exemption period for legal entities is not more than three years.

Moreover, based on Plusworld (9), operations of legal entities and individuals related to the turnover of crypto-assets, including those carried out by non-residents, are not subject to tax.

At the same time, NAPP is going to take regular fees per month from licensed entities:

$11,000 for crypto broker

$2,750 for mining pools

$550 for crypto exchanges

$135 for custodian

$275 for individual miners

Links

1)Crime Index by Country 2023 Mid-Year

2)List of countries by intentional homicide rate

3 and 9) Plus World. How are crypto assets regulated in Uzbekistan? Article

4, 7, and 8)Bits.media. Cryptocurrency Central Asia: features of regulation in the CIS. Article

5)Lexuz on-line. ORDER DIRECTOR OF THE NATIONAL AGENCY FOR ADVANCED PROJECTS OF THE REPUBLIC OF UZBEKISTAN ON APPROVAL OF THE REGULATIONS ON THE PROCEDURE FOR LICENSING THE ACTIVITIES OF SERVICE PROVIDERS IN THE FIELD OF CRYPTO-ASSET TRANSPORT. Order

6)Napp. Electronic register of licenses by type of service providers in the field of crypto-asset turnover.

Articles

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Review of republicans' approach to crypto regulation in the US and their next steps.

research

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United Arab Emirates is one of the most cryptofriendly jurisdictions in the world. In this research we set up all licensed crypto entities operating in the country

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US Lawmakers Unite Against SEC as Crypto Regulations Tighten Globally

Overview of crypto regulation news in Spring 2024

intro

Uzbekistan has exempted cryptocurrencies from taxation. It has a regulation framework for crypto companies. However, the practice of how this regulation operates has yet to be fully defined.

Security level

Crypto Payments

Crypto payments are officially banned (3) as a part of new crypto regulation.

Crypto Salaries

Since crypto payments are banned in Uzbekistan, crypto salaries are forbidden, too.

Legal

Another legal act

Decree of the President of the Republic of Uzbekistan of 3 July 2018, No PP-3832 "On measures to develop the digital economy in the Republic of Uzbekistan"

Decree of the President of the Republic of Uzbekistan of 2 September 2018, No PP-3926 "On measures to organize the activities of crypto exchanges in the Republic of Uzbekistan."

Decree of the President of the Republic of Uzbekistan No. PP-3927 of 2 September 2018 "On the formation of the fund to support the development of the digital economy Digital Trust."

Regulations on the procedure for licensing crypto exchanges (Order of the National Project Management Agency under the President of Uzbekistan No. 16 dated 21 January 2019)

Regulations on Crypto Exchange Trading (Order of the Director of the National Project Management Agency under the President of Uzbekistan No. 172 dated 6 December 2019)

Regulations on the procedure for licensing the activities of service providers in the field of crypto-asset turnover (Reg. No. 3380, dated 15 August 2022)

Regulations on the implementation of crypto shop activities (Reg. No. 3395 dated 31 October 2022)

Here is the official document (5) from NAPP that describes licensing procedures in Uzbekistan.

Tag	Type of Activity	Regulator
#cryptotofiat	Сrypto Exchange (криптомагазин)	NAPP
#cryptotocrypto	Crypto Broker (криптобиржа)	NAPP
#wallet	Custodian (криптодепозитарий)	NAPP
#ICO/STO	N/A
#cryptofund	N/A
#mining	Mining pool	NAPP

There are different types of licensed crypto entities in Uzbekistan, which include:

Crypto exchange

Crypto broker

Crypto custodian

Mining entity

The NAPP register (6) now includes ten entities: 1 platform, one wallet, and eight exchanges.

Taxation

Tax name	Index
PIT tax Min	0
PIT tax Max	0
Corporate tax (CIT)	0
Min Individual CGT (for crypto)	0
Max Individual CGT (for crypto)	0
Wealth tax Min	0
Wealth tax Max	0
Mining tax	0

Moreover, based on Plusworld (9), operations of legal entities and individuals related to the turnover of crypto-assets, including those carried out by non-residents, are not subject to tax.

At the same time, NAPP is going to take regular fees per month from licensed entities:

$11,000 for crypto broker

$2,750 for mining pools

$550 for crypto exchanges

$135 for custodian

$275 for individual miners

Links

1)Crime Index by Country 2023 Mid-Year

2)List of countries by intentional homicide rate

3 and 9) Plus World. How are crypto assets regulated in Uzbekistan? Article

4, 7, and 8)Bits.media. Cryptocurrency Central Asia: features of regulation in the CIS. Article

6)Napp. Electronic register of licenses by type of service providers in the field of crypto-asset turnover.