You Can Sell It, You Can’t Buy It: Rules of Cryptocurrency Trading in Uzbekistan

What taxes are payable for cryptocurrency
transactions in Uzbekistan?
According to the decree of the president on the measures to organise operations of
cryptoexchanges in Uzbekistan, all transactions related to the turnover of cryptoassets are
not taxable. All profits earned from such transactions are exempt from taxation and other

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You Can Sell It, You Can’t Buy It: Rules of Cryptocurrency Trading in
Uzbekistan
mandatory payments.
The norms of the law on currency regulation do not apply to transactions in
cryptocurrencies carried out by persons who are properly licensed. Moreover, the law on
securities, exchanges and exchange activities does not apply to the cryptoassets turnover
and activities of cryptoexchanges.
What is the punishment for the violation of
cryptocurrency trading rules in Uzbekistan?
In case of cryptocurrency buying by individuals who are residents of Uzbekistan, as well as
in case of purchase and sale via cryptoexchanges that are not licensed by NAPU, violators
may be held liable.
In 
June 2020
, a complaint was lodged against a resident who carried out illegal
transactions via Telegram, namely bitcoin buying and selling in the amount of 3 million
dollars. The case was opened on articles 
177
(“Illegal buying or selling of currency
assets”) and 
190
(“Carrying out unlicensed activities”) of the Criminal Code of Uzbekistan
that carry punishment up to seven years in prison.
In 
March 2021
, two residents were detained in Tashkent for making an illegal transaction,
namely buying and selling bitcoins for the amount of approximately 24 thousand dollars.
They were charged with the same violations as in the case above.
How do they mine in Uzbekistan?
Uzbekistan allows mining of cryptoassets. 
According to the law
, land plots are provided for
large-scale mining (more than 100 kWh) in special areas without electronic auctions. The
list of such areas is determined by Uzbekenergo and Uzbekgidroenergo jointly with NAPU,
chair of the Council of Ministers of the Republic of Karakalpakstan, khokims of regions
and the city of Tashkent, respectively.