On 3 July the President of Uzbekistan Shavkat Mirziyoev, signed a resolution “On measures for development of digital economy in the Republic of Uzbekistan”, media reported. We are talking about three areas of development.

First of all, “October 1, 2018, the order in which the activities in the field of trafficking scriptaction, including the establishment of kryptomere trade crypto-currency subject to licensing”. The competent authority for licensing of cryptocurrency trading designated National Agency project management office (NAPA) under the President of Uzbekistan.

The decree specifies that “cryptocurrency transactions conducted by persons licensed, is not subject to the provisions of the law on currency regulation”: operations with a turnover of cryptocurrency will not be taxed, and the proceeds included in the taxable base.

Second, the Ordinance provides that NAPA will receive a share in the Charter Fund of the Directorate Innovation centre to support the development and implementation of information technology, Mirzo Ulugbek Innovation Center, and within three months, the company “Uzbekenergo” and “Uzbekgidroingeo” will propose the launch of a pilot project of mining.

Finally, the NAPA and the Ministry for development of information technologies and communications commissioned in 2018-2020 to implement a programme on development of blockchain in Uzbekistan. In the framework of this programme provides for the introduction from 1 January 2021 of the blockchain in the work of state bodies, public procurement, government services, verification of information about the person; the conduct of public registers, classifiers and other databases; the system of corporate management of large commercial organizations with the state share in the Charter; in clearing operation, while making payments, trade Finance, and credit system.

In General, NAPA and the Ministry for development of information technologies was commissioned before January 1, to prepare a draft law “On digital economy and blockchain technologies.” These agencies should define “the basic concepts in the field of blockchain technology and its functioning principles; the powers of state bodies and actors in the field of blockchain; to provide for penalties in the case of using this technology for illegal purposes”. Also, they prescribed a two-month deadline to make “regulations on the procedure of licensing of activities for scriptactive” and “proposals for changes and additions to legislation arising from this decree”.

Signed by the President of Uzbekistan, the resolution lies in the outline of its policy reforms. The country needs change, and the transition to a digital economy could be an important step in this direction.