Uzbekistan Opens The door To Crypto Listings With Uznex Licensing

News / 22.01.2020

Uzbekistani regulators have okayed a firm with Korean ties to operate a cryptocurrency exchange in the nation. Uznex, which the Kobea Group runs from Korea, becomes the first exchange to be awarded that license.

Kobea group announced Uznex’s formation on the sidelines of a global blockchain conference in Tashkent on January 20.

The Uzbeki authorities are drafting legislation to make income from cryptos tax-exempt. Additionally, they are working towards the institution of a national mining pool for all its private miners.

A Change Of Heart

Uznex’s licensing is a complete departure from the government’s restrictions on its citizens’ purchase of cryptos from approved exchanges. Nevertheless,  Citizens can only trade in cryptos they obtained via transparent transactions. 

However, foreign firms and nationals residing in the nation will have full access to the exchange’s services under Uzbekistan’s legislation.

Cushioning Crypto Earnings From Taxation

In conforming with its decision to legalize crypto trading, the government is crafting laws to exempt income obtained through cryptocurrency trade from taxation. An excerpt from the draft laws reads:

“Operations of legal entities and individuals related to the circulation of crypto assets, including those carried out by non-residents, are not subjected to taxation, and income received from these operations is not included in the tax base for taxes and other obligatory payments.”

Pain For Private Miners

Private miners will, unfortunately, have to dig deeper into their pockets to sustain their activity. Part of the recommendations for the formation of a national mining pool proposes that they pay higher electricity charges than other businesses.

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Sudarshan M is a long time crypto-enthusiast. Pulled in by bitcoin early on, it did not take long for Sudarshan to divert all of his academic attention from business studies to blockchain by doing his Masters and eventually pursuing his PhD in the subject.