Country overview

#71
Uzbekistan

Country stats

Rating Points
198
This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.
Crypto Penetration
1.4%
Estimated percentage of crypto users out of the country's total population based on public data.
Legal Entities
10
Number of crypto companies registered in the country based on regulator data if available or other types of public data.
Regulation Points
80
An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.
Amount of crypto users
488 600
Total amount of crypto users out of the country's total population based on public data.
Taxation points
47
This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.
Market volume points
91.3
A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.
Status of crypto
Legally allowed
General status of cryptocurrency regulation in this jurisdiction.
Crypto payments
Ban
The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.
Security Level
Moderate danger
The overall level of security in a given country based on open data.
Crypto Salaries
Ban
The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.
Business Climate
Medium
Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.
Stablecoin Regulation
None
This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.
Bad Factors
No
This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.
Types of licenses
Mining
This field indicates jurisdictions where mining requires a special license.
Crypto-to-crypto
This license type allows VASP to provide legal exchange from one cryptocurrency to another.
Crypto-to-fiat
This type of license regulates the exchange from cryptocurrency to fiat.
Cryptofund
This indicator means that investment funds, trusts, and crypto funds can get regulator approval to provide their activity in the country.
Good
Medium
Bad
intro

Uzbekistan has exempted cryptocurrencies from taxation. It has a regulation framework for crypto companies. However, the practice of how this regulation operates has yet to be fully defined.

Security level

According to our rating, Uzbekistan has a moderate danger security level. The jurisdiction has 68.7 points (from 100) for safety level in Numbeo crime rating (1). Homicide level (2) is 1.4 per 100,000 inhabitants a year.

Crypto Payments

Crypto payments are officially banned (3) as a part of new crypto regulation.

Crypto Salaries

Since crypto payments are banned in Uzbekistan, crypto salaries are forbidden, too.

Legal

Cryptocurrencies in Uzbekistan are regulated (4) by the National Agency for Advanced Projects based on Presidential Decree No. UP-121 of April 27, 2022. Also, there are other legal acts regulating crypto operations in the country. You may see the complete list under the toggle below.

Another legal act

Decree of the President of the Republic of Uzbekistan of 3 July 2018, No PP-3832 "On measures to develop the digital economy in the Republic of Uzbekistan"

Decree of the President of the Republic of Uzbekistan of 2 September 2018, No PP-3926 "On measures to organize the activities of crypto exchanges in the Republic of Uzbekistan."

Decree of the President of the Republic of Uzbekistan No. PP-3927 of 2 September 2018 "On the formation of the fund to support the development of the digital economy Digital Trust."

Regulations on the procedure for licensing crypto exchanges (Order of the National Project Management Agency under the President of Uzbekistan No. 16 dated 21 January 2019)

Regulations on Crypto Exchange Trading (Order of the Director of the National Project Management Agency under the President of Uzbekistan No. 172 dated 6 December 2019)

Regulations on the procedure for licensing the activities of service providers in the field of crypto-asset turnover (Reg. No. 3380, dated 15 August 2022)

Regulations on the implementation of crypto shop activities (Reg. No. 3395 dated 31 October 2022)

Here is the official document (5) from NAPP that describes licensing procedures in Uzbekistan.

TagType of Activity Regulator
#cryptotofiatСrypto Exchange (криптомагазин)NAPP
#cryptotocryptoCrypto Broker (криптобиржа)NAPP
#walletCustodian (криптодепозитарий)NAPP
#ICO/STON/A
#cryptofundN/A
#miningMining poolNAPP

There are different types of licensed crypto entities in Uzbekistan, which include:

Crypto exchange

Crypto broker

Crypto custodian

Mining entity

The NAPP register (6) now includes ten entities: 1 platform, one wallet, and eight exchanges.

Based on BitsMedia (7), Uzbekistan also allows mining, but only for licensed legal entities that use it for renewable energy. Since 1 January 2023, crypto operations have been allowed only through entities licensed in the country.

Taxation
Tax nameIndex
PIT tax Min0
PIT tax Max0
Corporate tax (CIT)0
Min Individual CGT (for crypto)0
Max Individual CGT (for crypto)0
Wealth tax Min0
Wealth tax Max0
Mining tax 0

According to BitsMedia (8) currently all entities licensed by NAPP operate by regulatory sandbox regime. This regime exempts licensed crypto entities from any taxation, сustom duties. There is only PIT for employees with 7,5%. The tax exemption period for legal entities is not more than three years.

Moreover, based on Plusworld (9), operations of legal entities and individuals related to the turnover of crypto-assets, including those carried out by non-residents, are not subject to tax.

At the same time, NAPP is going to take regular fees per month from licensed entities:

$11,000 for crypto broker

$2,750 for mining pools

$550 for crypto exchanges

$135 for custodian

$275 for individual miners