The National Agency for Prospective Projects (NAPP) in Uzbekistan has announced a new directive that will have a profound impact on the cryptocurrency industry in the country. This move, which was revealed on March 19, 2024, is expected to double the revenue generated from the sector. Let’s take a closer look at what this directive means for the future of cryptocurrency operations in Uzbekistan.
The directive introduces a revised fee structure that significantly changes the financial obligations of participants in the crypto market. This amendment builds upon a previous directive from the Ministry of Justice in September 2022, indicating the government’s evolving stance on cryptocurrency regulation.
Under the new fee system, crypto exchanges will now be required to pay a monthly fee of 740 basis reference value (BRV), equivalent to approximately 251.6 million Uzbekistani som ($20,015). This represents a significant increase from the previous fee of 400 BRV, or 136 million som ($10,819). The BRV is a critical metric in Uzbekistan used for calculating various financial transactions, highlighting its importance in the regulatory framework.
Similarly, crypto retailers will face a substantial hike in their monthly fees, which have been set at 185 BRV, or 62.9 million som ($5,003). This is a significant jump from the previous fee of 20 BRV, approximately 6.8 million som ($540), indicating the government’s intention to leverage the profitability of the sector.
The NAPP’s decision to revise the fee structure is based on an assessment of the “adequate profitability” within the crypto retail and exchange sectors. By introducing these new fees, the agency aims to significantly increase state revenue derived from the crypto industry. It is expected that the revenue generated from the sector will double with the implementation of the new structure, demonstrating the Uzbekistani government’s optimistic outlook on the potential of the crypto market.
Furthermore, the NAPP has reassured industry service providers that the updated pricing structure will not have a negative impact on their financial stability. This balanced approach aims to increase state revenue while ensuring the continued viability of the crypto market. The new fee structure will take effect on June 20, giving market participants three months to adjust to the changes.
The announcement of increased fees comes amid other significant regulatory developments in Uzbekistan’s crypto landscape. The NAPP recently signed a Memorandum of Understanding with Tether, a leading stablecoin issuer, to explore and promote blockchain-based innovations in Uzbekistan. This partnership aims to establish a comprehensive legal and regulatory framework for crypto assets in collaboration with Uzbekistani regulators.
Uzbekistan’s proactive approach to regulation and innovation is part of a broader strategy by the government to foster a regulated and thriving crypto ecosystem. The country has restricted the provision of crypto services to licensed firms, with the first licenses issued to local crypto companies in November 2022. These regulatory measures followed restrictions on access to several major international crypto exchanges, including Binance, FTX, and Huobi, due to allegations of unlicensed activity.
In conclusion, Uzbekistan’s decision to increase fees for crypto operations is a significant milestone in the country’s approach to regulating the growing cryptocurrency market. By capitalizing on the sector’s profitability, the government aims to double its revenue, demonstrating a confident and strategic stance towards the future of digital currencies in Uzbekistan. With the new fee structure set to take effect and ongoing international collaborations focused on fostering innovation, Uzbekistan is positioning itself as a key player in the global crypto landscape, finding a balance between regulatory oversight and the promotion of technological advancement.
