FameEX Hot Topics | Uzbekistan Hikes Fees for Cryptocurrency Activities

In a significant move impacting the cryptocurrency landscape, Uzbekistan's National Agency for Prospective Projects (NAPP) has declared an increase in the monthly fees charged to cryptocurrency market participants. This announcement, made on March 19, 2024, amends an earlier directive from September 2022 by the Ministry of Justice. The revision follows NAPP's analysis of the profit margins in the crypto retail and exchange segments, leading to a new fee regimen for these sectors.

The revision stipulates a considerable rise in the fees for crypto exchanges. Now, exchanges are mandated to pay 740 base reference values (BRV), equivalent to 251.6 million Uzbekistani som ($20,015). This adjustment marks a significant uptick from the previous rate of 400 BRV or 136 million som ($10,819). The BRV metric is pivotal in Uzbekistan for the computation of various financial dealings, encompassing taxes, fees, and penalties.

Moreover, crypto retailers are subjected to an increased monthly fee of 185 BRV, translating to 62.9 million som ($5,003), a drastic escalation from the former fee of 20 BRV or roughly 6.8 million som ($540). According to the NAPP, this recalibration of fees is aimed at bolstering the state's revenue from the flourishing cryptocurrency industry, with projections indicating a potential doubling of revenue post-implementation. The agency also reassured stakeholders that the new pricing model is crafted to safeguard the financial viability of industry operators. The revamped fee structure is set to be enforced from June 20, allowing a three-month preparation window from its announcement date.

This policy adjustment aligns with NAPP's recent partnership with Tether, the renowned stablecoin issuer. This collaboration is geared towards fostering blockchain-based innovations within Uzbekistan, focusing on areas like stablecoins and the tokenization of digital assets. While the specifics of this alliance remain confidential, Tether has pledged to assist Uzbek regulatory bodies in developing a robust legal and regulatory framework for cryptocurrency operations in the nation.

Since 2023, Uzbekistan's regulatory framework has necessitated that only licensed entities can provide cryptocurrency services. The initial batch of licenses was dispensed to domestic crypto companies in November 2022. This regulatory stance reflects Uzbekistan's careful yet forward-looking approach to embedding cryptocurrency within its financial ecosystem, striving to strike a balance between fostering innovation and ensuring regulatory compliance to stimulate sectoral growth. This strategic direction underscores Uzbekistan's commitment to navigating the complexities of the digital currency revolution while aiming to leverage its benefits for economic advancement.

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