Blockchain Integration Decree Signed By President Of Uzbekistan

Blockchain, News, Regulation | July 5, 2018 By:

Uzbekistan President Shavkat Mirziyoyev has signed a decree on the development and integration of blockchain technology in both government and economy, and the legalization of cryptocurrencies.

The decree, “On measures for the development of the digital economy in the Republic of Uzbekistan,” was signed by the president on July 3. It describes emerging technologies, such as blockchain, artificial intelligence (AI), supercomputers, and crypto-related activities, as key development trends of digital economics globally. It calls for measures and methods to build a digital economy by adopting these technologies.

The document calls for the implementation of blockchain and smart contracts to diversify the various approaches related to investment and entrepreneurial operations. Initial coin offerings (ICO) are also encouraged. It also calls for local institutions to attract international experts to build and implement joint projects with local firms, as well as close interaction between state agencies and business entities to implement innovative ideas and technologies in the context of the digital economy.

The decree also mandates the introduction of a licensing regime for activities related to the circulation of cryptocurrencies. “The turnover of cryptocurrencies is regulated by special regulatory legal acts,” the decree said. “Operations related to this turnover are not subject to be taxed, while the revenues received are not included to the tax base.”

According to the decree, National Project Management Agency (NAPU), a body that was set up in 2017, and the Ministry of Development of Information Technologies and Communications (Mininfocom) will become responsible for the design and implementation of programs on blockchain development from 2018-2020. NAPU will decide the areas of activity in which blockchain will be adopted, and will have a major contribution to the creation of a legal framework. From 2021, blockchain will be integrated in the operations of government agencies.

In February of this year, the president ordered respective authorities to set up a competence center for blockchain technology within the Mirzo Ulugbek Innovation Center. The center, which will begin operating in July, will ensure the creation of the right conditions for blockchain innovations, while providing adequate training to developers in the country.