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Uzbekistan Creates State Blockchain Development Fund

Uzbek president Shavkat Mirziyoyev has established a state blockchain development fund called the “Digital Trust.”

Uzbek president Shavkat Mirziyoyev has ordered the establishment of a state blockchain development fund called the "Digital Trust", according to a document published on official government website Sunday, September 2.

The fund's aim is to integrate blockchain into various government projects including healthcare, education, and cultural areas. The organization will also be responsible for international investment in the Uzbek digital economy. The Digital Trust will be funded by the National Agency of Project Management in addition to international loans and grants.

In a recent move to support the blockchain and crypto industries in Uzbekistan, Mirziyoyev has approved legislative initiatives that will integrate blockchain into different public areas in the near future.

In July, Mirziyoyev signed an order "On measures for digital economics development in the Republic of Uzbekistan." The document makes provisions for blockchain to be integrated into certain aspects of public administration.

Under the order, the blockchain integration program must be introduced by 2020. At the same time, the Ministry for the Development of Information Technologies and Communication must present a blockchain integration scheme for international clearing facilities as well as lending and trade finance.

Mirziyoyev signed a law on crypto trading regulation which came into force September 2. According to the new law, foreign nationals can only trade cryptocurrencies in Uzbekistan by means of creating a subsidiary in the country. The law also specifies a minimum capital requirement of roughly $710,000 to establish a crypto exchange.

Furthermore, crypto traders will not fall under Uzbek stock market regulations and will be relieved of their obligation to pay taxes on trading revenues.

Under the new legislation, crypto exchanges must also comply with counter terrorist and anti-money laundering laws. They are also obliged to keep information on crypto transactions, clients' personal data and their correspondences for as five years.

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