At present, many countries are issuing some laws for the Cryptocurrency market. During its initial years, there were very few restrictions on this industry. But, over time, the governments of different nations are trying to put some rules for this market. These rules for the Crypto market are different for different nations. Also, if you are new to Crypto trading and investments then you must check the Bitcoin trading platform, BitSoft360.
Some nations are trying to legalize its use in everyday transactions. While others are trying to tax the profits from digital currencies. Now, Uzbekistan will charge fees each month from all the Cryptocurrency firms present there. This news will prove to be very crucial for operating the Crypto market in this nation.
More On This Announcement
Recently, this announcement has been in the news. And, there are different reactions to the similarities. NAPP is an agency responsible for managing the Cryptocurrency operations in Uzbekistan. The agency states that all the licensed Crypto firms will have to pay an amount every month to the authorities.
The amount collected as fees from these Crypto firms will join the nation’s budget. In other words, it will help in the growth of the country. An official paper has been published for this announcement. And, now the aspect of fees is in effect. And all the Cryptocurrency firms will have to pay it. There are some charges against those firms as well, which fail to pay these fees.
The rule is now in force and violation of the same may bring severe penalties. It is a strong rule set by around 3 authorities of the nation. Violating this rule may also lead to the suspension of the Cryptocurrency firm.
Differences In Charges As Per The Document
The latest rule made by the authorities of Uzbekistan is a strict one! All the Cryptocurrency firms are bound to follow it.
But, the charges are different for the firms. The amount of fees depends on what services they offer. For like, the Crypto exchanges will have to pay around 11,000 USD or 120 Million Soums every month. This is the highest amount from the Crypto exchanges. While the amount is less for lower firms in the Crypto market. Personal miners, Crypto stores, custodial services, and mining pools will pay lower fees.
All of these rules are present in the document. Also, the new law state that around 20% of these fees will get added to the NAPP’s treasury. And, the other 80% will head on to the budget of the nation.
If by any means the users or firms fail to pay the fees, they will have to face severe penalties. The license of the Crypto firms may be suspended as well. The document states that, if any such firm fails to pay the fee within a month, their license may be suspended. And, if they fail to pay twice in a year, the suspension is guaranteed!
The Crypto Market Condition In Uzbekistan
To maintain strict control over the Crypto market, the nation’s regulators blocked the international exchanges. This was done in August. And, the aim was to keep the different payment options under regulations. They blocked the other exchanges because those firms did not have licenses.
Binance, which is one of the biggest Crypto exchanges, faced the same issue. Their services were blocked in Uzbekistan. Later, they confirmed in the news that they are negotiating with Uzbekistan’s government.
Cryptocurrency trading has been legal in the nation since 2018. From that time onwards, the government has been trying to regulate the market in Uzbekistan. At present, all the Crypto exchanges will need to have a license to operate.
As per the laws, all the Crypto exchanges or other firms should have a license. Also, they need to pay this fee every month to operate in Uzbekistan. The authorities believe that by the new year, all the transactions will take place with licensed exchanges.
This is the recent news of Uzbekistan’s Crypto operation. Also, the firms will have to maintain a record of the transactions for around 5 years. And, before any transaction, they are required to verify the identity of the user. Like these laws, other nations may adopt the same rules over time as well.