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President Of Uzbekistan Takes a Stand on Blockchain Integration by Signing a Decree on Tax Exclusion for Crypto

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Uzbekistan is in a race to digitize economics in the country, as demonstrated by its President signing a decree on the growth and integration of blockchain technology and crypto mining. Through this move, the president hopes to modernize the administration system of the state with regards to digital assets. As such, president Shavkat Mirziyoyev signed a decree “On measures for digital economics development in the Republic of Uzbekistan” on July 3rd.

Government Going the Digital Way

According to the decree, blockchain, supercomputers, artificial intelligence and any activity related to cryptocurrencies are key development trends that currently drive digital economics all over the world. Based on these therefore, the president hopes to create the right environment to help introduce digital economics in the country.

Based on this development, the government office deals with project management, while the ministry of development of information technologies and communications is mandated to create and implement a program that will help spearhead blockchain development from 2018-2020.

Special License Needed for Crypto Agencies

Reportedly, blockchain will be integrated into the operation of government agencies for the sole purpose of helping verify and identify information in systems related to corporate management, as well as in clearing transactions. This will mean that any agencies that look forward to doing business in the cryptocurrency field, including the operation of crypto exchanges, will need to get a special license. Notably, this decree references a limited tax regime on cryptoassets.

The turnover of cryptoassets is regulated by special regulatory legal acts. Operations related to this turnover are not subject to be taxed, while the revenues received are not included to the tax base.

It was only in February this year that Uzbekistan announced it will publish its game plan to regulate cryptocurrency and blockchain  as a whole in September 2018, while at the same time seeing off the operation of a blockchain skill centre – beginning in July. Reportedly, the centre will create conditions that will see the uptake of blockchain’s potential, offering support to native developers, and increasing their professional ability.

Interestingly, Kyrgystan, another central Asian country, looks to be going down this route too. It recently released plans to make patent records more digital while creating a blockchain-based database for the state patent office of Kyrgyzstan, dubbed Kyrgypatent. It hopes to do this with the help of the Russian National Intellectual Property Transactions  Coordination Centre (IPChain).

Image Credit: Deposit Photos

What do you think about the move by Uzbekistan to make plans for the integration of blockchain in the country? Is this a step in the right direction? Let us know your views in the comments section below.

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