Uzbekistan To Legalize Bitcoin And Other Cryptotocurrencies

News, Regulation | February 26, 2018 By:

The government of Uzbekistan is expected to pass a law to regulate the use of bitcoin and cryptocurrencies in the country.

Uzbekistan President Shavkat Mirziyoyev signed a new decree that orders institutions in the country to finalize a draft law to legally regulate cryptocurrencies, or “electronic money”, by September 1. Various ministries of the country, including the Central Bank, the Ministry of Information Technologies and Communications, the Finance Ministry and the Ministry of Economy, have been given the task of preparing the bill.

The president has also ordered respective authorities to set up a competence center for distributed ledger technologies within the Mirzo Ulugbek Innovation Center. The center will ensure the creation of the right conditions for blockchain innovations, while providing adequate training to developers in the country. It is planned that this center will start working as early as June 1.

Mirziyoyev has also called for active development and promotion of contactless payment technologies such as PayPal, Visa, Mastercard, and Alipay. A set of complex measures to accomplish that goal are also expected by June.

Uzbekistan is in the top three of countries where it is profitable to mine cryptocurrencies, as the country is one of the low-cost producers of electricity in the region. Minting 1 bitcoin in the country costs just $1,790. Venezuela ($531) and Trinidad and Tobago ($1,190) are leading the chart.