Uzbekistan Revamps Fee Structure for Crypto Exchanges
The National Agency for Prospective Projects (NAPP) in Uzbekistan has introduced a new directive that raises the monthly fees for individuals involved in the country’s crypto market. This move, announced on March 19, 2024, aims to double the sector’s revenue once the new fee structure is implemented.
Revised Fee System Implemented
The decision to revise the fee structure follows a previous directive from the Ministry of Justice in September 2022. After reviewing the profitability of crypto trading and exchanges, the NAPP decided to implement a new fee system that would impact the crypto market.
Under the updated system:
- Crypto exchanges will be subject to a monthly fee of 740 basis reference value (BRV), equivalent to 251.6 million Uzbekistani som ($20,015). This is a significant increase from the previous fee of 400 BRV or 136 million som ($10,819).
- Crypto retailers will experience a notable monthly fee increase, now at 185 BRV per month or 62.9 million som ($5,003). This is a considerable increase from the previous fee of just 20 BRV or approximately 6.8 million som ($540).
In May 2022, licensed crypto companies in Uzbekistan were mandated to pay monthly fees primarily allocated to the state budget. The new regulations are already in effect and were enforced by NAPP, the Ministry of Finance, and the State Tax Committee of Uzbekistan.
According to the document, the monthly payment amount varies based on the type of services provided by the firm, along with a base fee determined for crypto companies at the time of payment.
Under the new guidelines, 80% of the monthly fees collected from crypto users and companies contribute to the country’s budget, while the remaining 20% is allocated to the NAPP’s treasury. Failure to comply with the new fee structure may result in penalties, including license suspension.
NAPP Partners with Tether for Crypto Market Enhancement
In addition to the fee adjustments, the NAPP has partnered with stablecoin issuer Tether. The memorandum of understanding (MoU) 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 intends to work with Uzbekistan’s regulators to establish a legal framework for crypto assets in the country.
Hot Take: Uzbekistan Increases Monthly Fees for Crypto Market Participants
Uzbekistan has taken a significant step in revamping its fee structure for individuals involved in the crypto market. By implementing a new directive and increasing monthly fees for crypto exchanges and retailers, the country aims to boost its revenue from this sector.
The decision follows an earlier directive from the Ministry of Justice and reflects a comprehensive review of the profitability of crypto trading and exchanges. The National Agency for Prospective Projects (NAPP) has collaborated with other government bodies to enforce these regulations.
While these fee increases may pose challenges for market participants initially, it is important to note that 80% of the fees collected will contribute to Uzbekistan’s budget. This indicates that the country is actively seeking to capitalize on the potential revenue generated by the crypto market.
Additionally, NAPP’s partnership with Tether showcases Uzbekistan’s commitment to fostering blockchain-based innovations. By working together, they aim to establish a legal framework for crypto assets in the country, further enhancing its position in the global crypto market.
Overall, these developments highlight Uzbekistan’s proactive approach to regulating and benefiting from the crypto industry. By implementing revised fee structures and collaborating with industry players, the country is positioning itself for growth and success in the evolving digital economy.
Sources:
Wyatt Newson emerges as a luminary seamlessly interweaving the roles of crypto analyst, dedicated researcher, and editorial virtuoso. Within the dynamic canvas of digital currencies, Wyatt’s insights resonate like vibrant brushstrokes, capturing the attention of curious minds across diverse landscapes. His ability to untangle intricate threads of crypto intricacies harmonizes effortlessly with his editorial mastery, transmuting complexity into a compelling narrative of comprehension. Guiding both seasoned navigators and curious newcomers, Wyatt’s insights serve as a compass for astute decision-making amidst the ever-shifting currents of cryptocurrencies. With the artistry of a linguistic craftsman, they skillfully craft narratives that enrich the evolving tableau of the crypto landscape.