Uzbekistan’s National Agency for Prospective Projects (NAPP) recently made a significant announcement regarding the crypto market in the country. The new directive includes a substantial increase in monthly fees for those involved in crypto trading and exchanges. This decision is expected to have far-reaching implications for the sector, with the NAPP projecting a doubling of revenue once the new fee structure is implemented.
Under the updated system, crypto exchanges will now be subject to a monthly fee of 740 basis reference value (BRV), equivalent to 251.6 million Uzbekistani som ($20,015). This marks a significant increase from the previous fee of 400 BRV, or 136 million som ($10,819). Similarly, crypto retailers will experience a notable monthly fee increase, now at 185 BRV per month, or 62.9 million som ($5,003), up from the previous fee of just 20 BRV, approximately 6.8 million som ($540).
In May 2022, licensed crypto companies in Uzbekistan were mandated to pay monthly fees, with the funds primarily allocated to the state budget. The new regulations, enforced by NAPP, the Ministry of Finance, and the State Tax Committee of Uzbekistan, are already in effect. Failure to comply with the new fee structure may result in penalties, including license suspension. The NAPP aims to ensure regulatory compliance and enhance state revenue from the crypto sector through these modifications.
According to the latest guidelines, 80% of the monthly fees collected from crypto users and companies will contribute to the country’s budget, while the remaining 20% will be allocated to the NAPP’s treasury. This allocation strategy aims to ensure a fair distribution of funds and support the development of the crypto market in Uzbekistan. The agency is optimistic about the potential for increased revenue once the new fee structure is fully implemented.
In addition to the fee adjustments, the NAPP recently announced a partnership with stablecoin issuer Tether. The memorandum of understanding between the two parties aims to foster blockchain-based innovations in Uzbekistan, including stablecoins and digital asset tokenization. While specific details of the partnership remain undisclosed, Tether is committed to collaborating with Uzbekistan’s regulators to establish a legal framework for crypto assets in the country. This partnership highlights the growing interest in blockchain technology and its potential applications in Uzbekistan’s financial sector.
The new fee structure introduced by Uzbekistan’s NAPP represents a significant development in the country’s crypto market. By increasing monthly fees for crypto exchanges and retailers, the agency aims to boost state revenue and ensure regulatory compliance in the sector. The allocation of funds to the country’s budget and the NAPP’s treasury will support ongoing initiatives to enhance the crypto market in Uzbekistan. Additionally, partnerships with industry players like Tether signal a commitment to fostering blockchain-based innovations and establishing a robust legal framework for crypto assets. As the new fee system takes effect, it will be essential to monitor its impact on the industry and evaluate its effectiveness in achieving the NAPP’s revenue projections.
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