Uzbekistan Introduces Monthly Fees for Crypto Companies Effective Immediately

The new regulations also require crypto custody platforms, mining pools and individual miners to pay monthly fees to the government.

AccessTimeIconSep 30, 2022 at 1:55 p.m. UTC
Updated Oct 3, 2022 at 8:07 a.m. UTC

Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.

Sandali Handagama is a CoinDesk reporter with a focus on crypto regulation and policy. She does not own any crypto.

Uzbekistan now requires licensed cryptocurrency companies in the country to pay monthly fees that will mostly go towards the state budget, an official document published Wednesday shows.

The new rules set out by the National Agency of Perspective Projects (NAPP), the Ministry of Finance and the State Tax Committee of the Republic of Uzbekistan are already in force. How much a firm will have to pay each month depends on the type of service it provides as well as a base figure set for crypto companies at the time the monthly payment is to be made, the document says.

Crypto exchanges have to pay 120 million Uzbekistani soums ($11,000) an NAPP spokesperson told CoinDesk. The document also lays out proportionally smaller payments required from cryptocurrency stores, custodial services, mining pools as well as individual miners.

The central Asian country is cracking down on the local crypto industry. A crypto regulation framework published in April mandated crypto exchanges, custodians and mining pools operating in the country to register with regulators. In August, the country moved to block crypto exchanges like Binance, Huobi, FTX and Bybit, saying local regulations did not allow citizens to trade crypto on foreign platforms.

According to the new rules, 80% of the monthly fees paid by crypto users and companies will go to the country's budget, while the rest will go to the treasury of the NAPP.

Companies that fail to pay the new fee will face penalties including the suspension of their licenses, Forklog said.

UPDATE (Oct. 3, 08:07 UTC): Adds NAPP comment.

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Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.

CoinDesk - Unknown

Sandali Handagama is a CoinDesk reporter with a focus on crypto regulation and policy. She does not own any crypto.

CoinDesk - Unknown

Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.

CoinDesk - Unknown

Sandali Handagama is a CoinDesk reporter with a focus on crypto regulation and policy. She does not own any crypto.