Uzbekistan’s National Agency for Prospective Projects (NAPP) has recently declared a significant change in the fee structure for individuals involved in the crypto market within the country. This decision, made on March 19, 2024, is expected to lead to a doubling of revenue in the sector. The objective behind revising the fee structure is to boost state revenue from the crypto sector without undermining the financial stability of industry service providers.
Under the updated system, crypto exchanges in Uzbekistan will now be required to pay a monthly fee of 740 basis reference value (BRV), equivalent to 251.6 million Uzbekistani som ($20,015). This is a considerable increase from the previous fee of 400 BRV, or 136 million som ($10,819). Similarly, crypto retailers will experience a notable monthly fee hike, now set at 185 BRV per month, or 62.9 million som ($5,003). Previously, the fee was only 20 BRV, approximately 6.8 million som ($540).
In May 2022, licensed crypto companies in Uzbekistan were mandated to pay monthly fees, primarily directed towards the state budget, according to an official document. Failure to adhere to the new fee structure may result in penalties, including license suspension. The regulations, enforced by NAPP, the Ministry of Finance, and the State Tax Committee of Uzbekistan, are already in effect. The NAPP ensures that the updated pricing structure will not compromise the financial stability of industry service providers.
Under the new guidelines, 80% of the monthly fees collected from crypto users and companies will go towards the country’s budget, while the remaining 20% will be allocated to the NAPP’s treasury. In addition to the fee adjustments, the NAPP has recently entered into a partnership with stablecoin issuer Tether. The collaboration aims to promote blockchain-based innovations in Uzbekistan, such as stablecoins and digital asset tokenization. Though specific details of the partnership remain undisclosed, Tether intends to cooperate with Uzbekistan’s regulators to establish a legal framework for crypto assets in the country.
The impending implementation of the new fee system on June 20, three months after its official announcement, will mark a significant shift in the Uzbekistan crypto market. By revising the fee structure, the NAPP is striving to enhance state revenue from the sector while ensuring the financial stability of industry service providers. As the crypto landscape continues to evolve, regulatory changes like this will play a crucial role in shaping the future of the industry in Uzbekistan.