Uzbekistan wants to boost the market-based economy and for that reason, their government has decided to take initiatives that are favorable to the growing crypto industry.
Uzbekistan, a former Soviet nation, confirmed that it is legalizing crypto exchanges and that is urging for blockchain companies to set up offices in the country. The legalization finally came through after a presidential decree was signed to encourage the use of the blockchain technology and cryptocurrency in the country.
According to the document published by the President of Uzbekistan, the government claims that they will not treat cryptocurrencies as securities. This means that all the laws that are a must for security exchanges, will not apply to crypto exchanges. This doesn’t mean, however, that the crypto trading will be unregulated. Crypto trading will come under new rules that are basically special normative acts.
Foreign legal entities that are set up in Uzbekistan will be able to open cryptocurrency exchanges in the country. They are not liable to pay taxes so any revenue gathered from cryptocurrency will be untaxable which will deliver on the promise that crypto assets are records of data stored on the blockchain that have value and owner. Of course, when you see that something is free almost always means it’s not.
Foreign entities that want to open a crypto exchange will have to own an authorized capital in order to support at least 30,000 minimum wages when they apply and 20,000 minimum wages to be reserved in a state-backed bank. Also, the state requires that crypto-exchanges must base their servers in Uzbekistan and must store all transaction information and user identification for a period of five years.
The Market Is Still Dominated By Centralized Exchanges Despite The Increase In DEX
Saudi Arabia And UAE Officially Launched A Pilot Cryptocurrency
‘’The virtual currency relies on the use of a distributed database between the central banks and the participating banks from both sides. It seeks to safeguard customer interests, set technology standards and assess cybersecurity risks. The project will also determine the impact of a central currency on monetary policies.’’The financial institutions in the countries have thoroughly studied the blockchain technology and are hoping to have great benefits. Back in December 2018, UAE’s Securities and Commodities Authority recognized ICOs as securities and they also announced to be working on a regulatory framework for 2019. UAE’s Emirates Islamic Bank also tested the blockchain and even started submitting cheques on a blockchain named ‘’Cheque Chain’’ and since it has proven to be successful, the bank registered one million cheques in 2018 in only a month.
UN Thinks Bitcoin & Crypto Are “The New Frontiers” In Finance, Focusing On Ripple And IOTa
“Cryptocurrencies represent a new frontier in digital finance and their popularity is growing. The decentralized networks for cryptocurrencies, bitcoin being a well-known example, can keep track of digital transactions. They enable value to be exchanged and can give rise to new business models which would otherwise require significant regulatory and institutional commitments." the report states.According to the UN, blockchain and crypto have many use cases. As it is explained in the document:
"For example, a value token called ClimateCoin is being considered as a basis for creating a global market for carbon emissions, allowing peer-to-peer exchange of carbon credits and a direct connection with the Internet of Things. It would then be possible for devices to calculate their own carbon emissions and purchase carbon credits to offset those emissions."The document also focuses on innovation and how it comes from inherent trust, citing that "the innovativeness of this system lies in the way in which the various parts combine to create the trust and guarantees that the traditional financial system derives from institutions and regulation."
“Bitcoin Is The Only Blockchain That May Exist For The Next 100 Years” : Alistair Milne
“The probability that Bitcoin matches its ATH [all-time high] price again and doesn't then continue past it seems very low. Each wave of adoption is an order of magnitude bigger than the last,” Milne wrote in the Twitter thread that he started on Saturday.Meanwhile, Bitcoin suffered another drop which took it below $3,500, giving less optimism to traders hoping for a new bull run. The new downturn has led to many accusations from high-profile economics figures. However, Milne continued expressing his optimism and said:
“The next bull run will decide which public blockchains persist for the next 100 years. I believe Bitcoin is currently the *only* sure thing[.]”Aside from this, Milne also highlighted the interest by institutional investors and labeled Bitcoin's profile as the "gold 2.0" in the next round of adoption.
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