In order to boost state revenue from the crypto sector, Uzbekistan’s National Agency for Prospective Projects (NAPP) recently announced a significant change in the fee structure. According to the recent statement by NAPP, this revised fee structure is initiated by the Ministry of Justice for participants in the country’s cryptocurrency market.
Uzbekistan’s NAPP new amendment to boost state revenue
However, this amendment comes after NAPP considers the profitability within the cryptocurrency retail and exchange sectors. Additionally, NAPP anticipates that after considering this new amendment in the fee structure, the revenue generated from the crypto sector will double with the implementation of the new fee structure.
Following this revised fee system, crypto exchanges in Uzbekistan will now face a monthly fee of 740 basis reference values (BRV), equivalent to 251.6 million Uzbekistani som, which is $20,015. This surge in the fee structure has nearly doubled from the previous fee of 400 BRV or 136 million som, which is nearly $10,800.
Why Uzbekistan increase fee structure for crypto operations?
Besides the increase in the fee structure, NAPP also assures that the updated pricing will not harm the financial stability of industry service providers. According to NAPP, this amendment in the fee structure is scheduled to take effect on June 20, 2024, three months after its official publication.
The new fee structure reflects Uzbekistan’s efforts to regulate and capitalize on the growing cryptocurrency market within its borders. One more thing users need to know is that these events are occurring just before the Bitcoin halving. The upcoming Bitcoin halving, expected to take place on April 19, 2024, will increase the mining difficulty, and miners’ revenue will also be halved.
Additionally, in October 2023, NAPP banned individual miners and advised firms to use solar power to mine cryptocurrencies as reported by Todayq News. However, it seems Uzbekistan’s fee structure amendment is planning to overcome all the losses that it will face after the halving.
Currently, Bitcoin is trading near $63,900, and in the last 24 hours, it experienced a price surge of over 2% and a massive price correction. If we look at the performance of Bitcoin over a longer period, in the last 7 days, Bitcoin’s price experienced downside momentum of over 12%, whereas in the last 30 days, it experienced a price surge of over 23%.
