Uzbekistan Generates Over $300K from Crypto Sector: Taxes Digital Assets

Cryptocurrency transactions are generally not subject to taxation in Uzbekistan, but the federal government is gaining increasing amounts of income from trading. The increase in funds income can be attributed to the overhauled licensing system and the imposition of fees for digital asset companies.

Crypto Exchanges in Uzbekistan Pay more than $10K per Month to the Government

Licensed crypto companies have paid 3.5 billion Uzbek som (over $310,000) to the fund since 2022. A press conference held by the agency responsible for supervising the sector revealed the name of the regulator. Forklog reported the news.

At the briefing, the National Agency for Perspective Projects (NAPP), which is subordinate to the president, presented the results of its activities. Officers said that the government was able to increase its cash flow due to the revised licensing system and the imposition of fees for businesses dealing with digital assets.

Currently, five crypto platforms are allowed to operate in the country and have paid for the privilege. These are the state-regulated Uznex, as well as four smaller exchanges, Crypto Trade NET, Crypto Market, Crypto Express, and Coinpay.

Crypto service providers in Uzbekistan have been liable for paying monthly charges since October. The fees for crypto exchanges such as Uznex are the smallest for buying and selling platforms, which are roughly $500. Additionally, there are also so-called “cryptocurrency shops.”

In the current legislation, operations of authorized and unregistered individuals involved in crypto transactions are subject to taxation. The government of Tashkent has previously warned citizens to avoid unlicensed companies. In August 2022, the authorities attempted to limit access to online trading platforms located outside the country. Only in November 2021 were Uzbekistanis allowed to buy and sell currency on national exchanges.

NAPP also noted that 80% of the fees paid by licensed crypto companies go to the state fund, while the remaining 20% is transferred to their own accounts. In late June 2022, the agency began requiring miners to register in order to be exempt from taxation. Two months prior, a presidential decree had regulated mining and the buying and selling of commodities.

What do you think? Will Uzbekistan tax crypto companies sooner than expected? Please share your thoughts in the comments section below.