The regulation of cryptocurrencies in the most important countries of Central Asia

As reported, the president of Uzbekistan, Shavkat Mirziyoyev, ordered the establishment of a state chain block development fund called “Digital Trust”. At the beginning of September, a decree that legalized crypto trade – also made it free of taxes – and mining in the country came into force, making Uzbekistan a crypto-friendly state.

The following list represent the regulations trhat Asia are making all based on news, but in no way should it be considered complete. If you have more detailed information about banks and the crypto relationship in your country, we encourage you to share it in the comments section.

Kazakhstan

Kazakhstan has clearly shown its interest in cryptocurrencies. According to a study published by the search engine Yandex in March, the local population has been looking for terms related to the crypto frequency and the number is several times higher this year compared to 2017.

Kazakhstan is actively trying to become the main blockchain center in the region: In June, the country’s capital, Astana, held “the most important event for fintech in Central Asia” – a large blockchain conference supported by some public authorities and the Kazakh Association of Block and Cryptocurrency Chains (KABC) .º

The KABC was registered in November 2017 by at least six organizations, some of which are run by people who previously worked in local regulatory bodies. The president of the coalition has previously stated that its main objective is “to define the rules of the crypto market and the block chain together with the control body”.

Some of the country’s public authorities have already begun to investigate the underlying crypto technology. Thus, in April, the Ministry of Finance announced that it was going to launch a database fed by a chain of blocks, while a local innovation group partnered with IBM to study how the Hyperledger fabric of the IT giant could be implemented to the local economy. “

Kyrgyzstan

Kyrgyzstan explicitly banned cryptocurrencies in July 2014, when the National Bank of the Kyrgyz Republic issued a statement warning that the use of Bitcoin and other virtual currencies as a form of payment was illegal under national law:

The central bank also warned citizens about the lack of Bitcoin regulation and high levels of volatility. At the same time, Italian financial analyst Emanuele Costa installed a Bitcoin ATM in Bishkek, which argued that the ATM could have a major impact on the way migrant workers in Kyrgyzstan send money to their home countries. According to the World Bank, remittances from migrants as of 2013 represented 31% of Kyrgyzstan’s GDP.

Tajikistan

Cryptocurrencies are not legal nor are they prohibited in Tajikistan. However, in January, the National Bank of Tajikistan (NBT) ruled on the matter for the first time, calling Bitcoin a “terrorist financing tool”.

“Based on the experience of financial institutions, the National Bank warns nationals of Tajikistan of the risks related to the use of Bitcoins,” NBT said in a written response to the Tajik service of Radio Liberty.

Although the Tajik government seems to ignore technology, there are some blockchain projects in the country. Specifically, in June 2017, Bitspark, a new blockchain company based in Hong Kong, partnered with the United Nations Development Program (UNDP) to study the potential of blockchain remittances as a way to improve financial inclusion in Tajikistan.

Turkmenistan

There is no specific information about the legal status of virtual currencies in Turkmenistan. According to the answers published in a thread at a forum on mining in Russia, where the opening poster asked if it was possible to buy cryptocurrencies in Turkmenistan, even over-the-counter (OTC) markets are hardly present in the region. Reportedly, virtual currencies can only be purchased with US dollars, but the government has been limiting access to foreign currency for businesses and local citizens.

Uzbekistan

Recently, Uzbekistan has introduced a series of positive regulation laws for the local crypto industry, namely the recognition of trade and mining, as well as the exemption of taxes from local crypto merchants.

The country’s president, Shavkat Mirziyoyev, has signed a law that legalizes the activities of the crypto exchanges, which came into force on September 2 and that, according to the decree, foreigners can only trade with cryptocurrencies in Uzbekistan through of the creation of a subsidiary in the country. The law also specifies a minimum capital requirement of approximately $ 710,000 to register a crypto exchange.

In addition, crypto traders will not be subject to the regulations of the Uzbek stock market and will be exempted from the obligation to pay taxes on commercial income.

Under the new legislation, crypto exchanges must also comply with antiterrorist and anti-money laundering laws. They are also required to store information about the crypto transactions, the personal data of the clients and their correspondence for five years.

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