March 27, 2024
Policy & Regulation

Uzbekistan Increases Monthly Fees for Crypto Market Participants

Uzbekistan’s National Agency for Prospective Projects (NAPP) has issued an order to modify monthly fees for cryptocurrency market participants, commencing Tuesday, March 19, 2024.

Revised Fee Framework

The updated fee framework, an amendment to a directive initiated by the Ministry of Justice in September 2022, significantly increases the monthly fees for both crypto exchanges and retailers. Under this new structure, crypto exchanges will face a monthly fee of 740 basis reference value (BRV), equivalent to approximately 251.6 million Uzbekistani som ($20,015), compared to the previous fee of 400 BRV or 136 million som ($10,819). Similarly, crypto retailers will see their monthly fees rise to 185 BRV, approximately 62.9 million som ($5,003), up from the previous 20 BRV or 6.8 million som ($540).

Objective and Impact

According to the NAPP, these modifications aim to enhance state revenue from the crypto sector, with anticipated revenue doubling once the new fee structure is implemented. However, the agency assures that the updated pricing structure will not jeopardize the financial stability of industry service providers. The new fee structure is set to take effect on June 20, 2024, three months after its official publication.

Partnership with Tether and Legal Actions

This decision follows NAPP’s recent agreement with stablecoin issuer Tether, which aims to advance blockchain-based innovations in Uzbekistan. However, the specifics of the cooperation have not been divulged. Furthermore, the NAPP’s decision to sue Binance for operating without a license demonstrates the government’s commitment to regulating the cryptocurrency business. Since November 2022, Uzbekistan has granted licenses to local crypto businesses, while blocking access to unlicensed international exchanges like as Binance, FTX, and Huobi since 2023.

As Uzbekistan continues to navigate the complexities of regulating its crypto market, these recent developments mark significant steps towards establishing a robust regulatory framework in the country.

Image from Deviant Art

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