FameEX Hot Topics | Uzbekistan Raises Charges on Cryptocurrency Transactions

Uzbekistan's National Agency for Prospective Projects (NAPP) has announced an increase in monthly fees for participants in the cryptocurrency market, effective from Tuesday, March 19, 2024. This decision comes as part of an amendment to a directive that was first introduced by the Ministry of Justice in September 2022. The adjustment in fees is a result of the NAPP's evaluation of the profitability within the crypto retail and exchange sectors, leading to the establishment of a revised fee structure for these entities.

The updated fees include a significant hike for crypto exchanges, which are now required to pay a monthly fee of 740 base reference value (BRV), translating to 251.6 million Uzbekistani som ($20,015). This represents a notable increase from the earlier fee of 400 BRV or 136 million som ($10,819). The BRV is a standard measure used for calculating financial transactions in Uzbekistan, including taxes, fees, and fines.

Crypto retailers are also facing a steep increase in their monthly fees, which have been raised to 185 BRV, or 62.9 million som ($5,003). This is a substantial rise from their previous fees of 20 BRV, approximately 6.8 million som ($540). The NAPP states that these fee modifications are intended to enhance the government's revenue from the burgeoning crypto sector, with expectations that the revenue will double following the implementation of the new fee structure. Furthermore, the NAPP has assured that the revised fee system is designed to not adversely affect the financial health of the service providers in the industry. The new fee structure is slated to become effective on June 20, providing a three-month grace period from its announcement.

This development closely follows the NAPP's partnership with Tether, a prominent stablecoin issuer. The collaboration focuses on exploring and advancing blockchain innovations in Uzbekistan, such as stablecoins and digital asset tokenization. While specific details of the partnership remain under wraps, Tether has expressed its commitment to working with Uzbek regulators to craft a comprehensive legal and regulatory framework for cryptocurrencies in the country.

Since 2023, the Uzbek government has mandated that only licensed cryptocurrency firms are permitted to offer crypto services, with the first set of licenses issued to local companies in November 2022. This regulatory approach underscores Uzbekistan's cautious yet progressive stance towards integrating cryptocurrencies into its financial system, balancing innovation with regulatory oversight to foster growth in the sector.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.