From Kazakhstan to Uzbekistan: How Cryptocurrencies Are Regulated in Central Asia

As been reported on September 2, the president of Uzbekistan, Shavkat Mirziyoyev, ordered the establishment of a state blockchain development fund called the "Digital Trust." Earlier in September, a decree legalizing crypto trading - also making it tax-free - and mining in the country came into force, making Uzbekistan a crypto-friendly state.

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The president's comment followed the National Bank of Kazakhstan's announcement that they are going to ban crypto trading and mining in the country.

Kazakhstan is actively trying to become the region's main blockchain hub: 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 for Blockchain and cryptocurrencies.

The coalition's chairman has previously stated that their primary goal is to "Define the rules for crypto and blockchain's market jointly with the watchdog."

According to the World Bank, migrant remittances from 2013 totaled 31 percent of Kyrgyzstan's GDP. Despite the central bank's harsh stance on crypto, virtual currencies are present in the country.

"Our local investment market infrastructure can be used to legally invest into any crypto assets. Does someone want to buy cryptocurrencies? Let him do it through the local commodities exchange, and he will pay local taxes. Does someone want to raise capital for a startup through an Initial Coin Offering? Let him do it through the local stock exchange. Its listing rules are not so complex."

Recently, Uzbekistan has introduced a number of positive regulation laws for the local crypto industry, namely recognizing trading and mining, as well as exempting local crypto traders from taxation.

The country's president, Shavkat Mirziyoyev, has signed a law legalizing the activities of crypto exchanges, which came into force on Sept. 2.

According to the decree, foreign nationals can only trade cryptocurrencies in Uzbekistan by means of creating a subsidiary in the country.