Uzbekistan’s National Agency for Prospective Projects (NAPP) has introduced a new rule to increase the monthly fees for those involved in the crypto market in the country. This decision was made on Tuesday, March 19, 2024.
The updated fee system is a modification of a directive that was first introduced by the Ministry of Justice back in September 2022. This adjustment comes after the NAPP examined the profitability of crypto retail and exchange sectors and decided to implement a new fee structure affecting both entities.
Uzbekistan Increases Fees for Crypto Transactions
Crypto exchanges will now have to pay a monthly fee of 740 basis reference value (BRV), which equals 251.6 million Uzbekistani som ($20,015). This is a significant increase from the previous fee of 400 BRV or 136 million som ($10,819). On the other hand, crypto retailers will face a higher fee of 185 BRV per month, equivalent to 62.9 million som ($5,003), compared to the previous fee of 20 BRV or 6.8 million som ($540).
The NAPP aims to increase state revenue from the crypto sector with these changes and expects the revenue to double once the new fee structure is implemented. However, it assures that the financial stability of industry service providers will not be negatively affected.
Partnership with Tether
This mandate comes shortly after the NAPP signed a Memorandum of Understanding with stablecoin issuer Tether. The agreement involves Tether exploring and promoting blockchain-based innovations in Uzbekistan, including stablecoins and digital asset tokenization.
Additionally, the NAPP is pursuing legal action against Binance for operating without a license and not paying the fines. The government of Uzbekistan has restricted the provision of crypto services to licensed cryptocurrency firms since 2023, granting the first licenses to local crypto firms in November 2022. Previously, access to several international crypto exchanges, including Binance, FTX, and Huobi, was restricted due to allegations of unlicensed activity.
