Crypto Trading Company In Uzbekistan Must Post Monthly Costs To The Government

The Uzbekistan crypto exchange must pay a high tax to the government. (Photo; Doc. Bitdegree)

JAKARTA The company engaged in crypto trading in Uzbekistan has paid 3.5 billion soms (equivalent to Rp4.5 billion) in Uzbekistan to the country's government during 2022. The National Project Perspective Agency (NAPP), an institution under the president, announced the results of their work through a press conference reported by a crypto news outlet, Forklog.

As a result of the modified licensing system and cost payments for businesses working with digital assets, the government of Uzbekistan managed to raise the money. Five crypto platforms are currently authorized to operate legally and have paid that amount. Four of them are small exchanges, namely Crypto Trade NET, Crypto Market, Crypto Express, and Coinpay, while the other is a state-controlled exchange, Uznex.

Launching Bitcoin.com News, since October, crypto service providers in Uzbekistan must pay certain monthly fees to carry out business activities. The amount of costs ranges from more than US$10,000 (around Rp150 million) for exchanges such as Uznex to around US$500 (Rp7 million) for small exchanges also known as crypto stores. Individuals and organizations involved in crypto transactions must also pay taxes in Uzbekistan, although it involves non-residents and companies based outside the country.

Crypto Transactions Must be Domestic

The government of Uzbekistan has warned its citizens to avoid unlicensed crypto exchange services. This is after the government tried to restrict citizens' access to foreign-based crypto online trading sites in August 2022.

However, Uzbekistanns have been allowed to make crypto transactions on domestic exchanges since November 2021. According to the National Agency of Project Management (NAPP), 80 percent of the licensing crypto company's costs have entered the state budget, while another 20 percent have been received by the agency.

At the end of June 2022, NAPP also presented registration requirements for crypto miners exempted from taxes. Policies regarding cryptocurrencies, mining, and trade are regulated by a presidential decree issued two months earlier.