Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Journal home page:
https://inscience.uz/index.php/socinov/index
Analysis of the legal practice of Uzbekistan and EU
countries in the field of legal regulation of blockchain and
cryptocurrency
Mohichehra RAKHMONOVA
1
Tashkent State University of Law
ARTICLE INFO
ABSTRACT
Article history:
Received September 2022
Received in revised form
25 October 2022
Accepted 20 November 2022
Available online
25 December 2022
This scientific article discusses the issues of legal status of
such terms as blockchain, blockchain technologies, as well as
crypto assets, stable coins and tokens. The article reveals the
issues of legal regulation of relations arising in course of
cryptocurrency transactions and the use of blockchain
technologies, which also include the activity of crypto
exchanges, the use of smart contracts and the processes of
buying and selling tokens.
The author provides examples of countries where crypto
assets are legalized, and conducts a comparative analysis of the
legislation of the Republic of Uzbekistan, the Federal Republic of
Germany and the Czech Republic regarding the mechanisms for
carrying out cryptocurrency transactions and the use of
blockchain technologies.
When studying the legislation of Uzbekistan, attention is
paid to the latest ongoing reforms in the field of digitalization
and the development of the electronic economy and
government in our country. When analyzing the legislation of
countries such as Germany and the Czech Republic, relevant
situations and examples of court decisions are given in order to
determine the effectiveness of law enforcement in the field of
blockchain technologies and cryptocurrency and identify
existing problems in this area. At the end of the article, the
relevant conclusions of the author and proposals for improving
the legislation of the Republic of Uzbekistan are given.
2181-
1415/©
2022 in Science LLC.
https://doi.org/10.47689/2181-1415-vol3-iss11/S-pp270-282
This is an open-access article under the Attribution 4.0 International
(CC BY 4.0) license (https://creativecommons.org/licenses/by/4.0/deed.ru)
Keywords:
blockchain,
blockchain technology,
crypto assets,
cryptocurrency,
cryptography,
secret code,
token,
stable coin,
smart contract,
tokenization.
1
Lecturer, Tashkent State University of Law. E-mail: rakhmnva @ gmail.com.
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
11 (2022) / ISSN 2181-1415
271
O‘zbekiston va Yevropa
Ittifoqi davlatlarining blokcheyn
va kriptovalyutalarni huquqiy tartibga solish sohasidagi
huquqiy amaliyotini tahlil qilish
АННОТАЦИЯ
Kalit so‘zlar
:
blokcheyn,
blokcheyn texnologiyasi,
kriptoaktivlar,
kriptovalyuta,
kriptografiya,
maxfiy kod,
token,
stablecoin,
aqlli shartnoma,
tokenizatsiya.
Ushbu ilmiy maqolada blokcheyn, blokcheyn texnologiyalari,
shuningdek kriptoaktivlar, stabilkoinlar va tokenlar kabi
atamalarning huquqiy maqomi masalalari muhokama qilinadi.
Maqolada kriptovalyuta operatsiyalarini amalga oshirish va
blokcheyn texnologiyalaridan foydalanish natijasida yuzaga
keladigan munosabatlarni huquqiy tartibga solish masalalari
ochib berilgan, ular shuningdek kriptovalyuta birjalari
faoliyatini, aqlli shartnomalardan foydalanishni va tokenlarni
sotib olish va sotish jarayonlarini o‘z ichiga oladi. Muallif
kriptoaktivlar qonuniylashtirilgan mamlakatlar misollarini
keltirib, kriptovalyuta operatsiyalarini amalga oshirish
mexanizmlari va blokcheyn texnologiyalaridan foydalanish
nuqtai nazaridan O‘zbekiston Respublikasi, Germaniya
Federativ Respublikasi va Chexiya qonunchiligining qiyosiy
tahlilini o‘tkazadi. O‘zbekiston qonunchiligini o‘rg
anishda
mamlakatimizda davlat boshqaruvini raqamlashtirish va
raqamli
iqtisodiyotni
rivojlantirish
sohasida
amalga
oshirilayotgan so‘nggi islohotlarga e’tibor qaratilmoqda.
Germaniya, Chexiya kabi davlatlar qonunchiligini tahlil
qilganda, blokcheyn va kriptovalyutalar sohasida huquqni
qo‘llash samaradorligini aniqlash va bu boradagi mavjud
muammolarni aniqlash maqsadida tegishli vaziyatlar va sud
qarorlaridan
misollar
keltiriladi.
Maqolaning
oxirida
muallifning tegishli xulosalari va O‘zbekiston Respublikas
i
qonunchiligini takomillashtirish bo‘yicha takliflari keltirilgan.
Анализ правовой практики Узбекистана и стран ЕС
в области правового регулирования блокчейн и
криптовалют
АННОТАЦИЯ
Ключевые слова:
Блокчейн,
технология блокчейн,
криптоактивы,
криптовалюта,
криптография,
секретный код,
токен,
стейблкоин,
смарт
-
контракт,
токенизация.
В данной научной статье рассматриваются вопросы
правового статуса таких терминов, как блокчейн,
блокчейн
-
технологии, а также криптоактивы, стейблкоины
и токены. В статье раскрываются вопросы правового
регулирования отношений, возникающих при совершении
криптовалютных операций и использовании технологий
блокчейн, к которым также относится деятельность
криптобирж, использование смарт
-
контрактов и процессы
купли
-
продажи токенов. Автор приводит примеры стран,
где
легализуются
криптоактивы,
и
проводит
сравнительный анализ законодательства Республики
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
11 (2022) / ISSN 2181-1415
272
Узбекистан, Федеративной Республики Германии и Чехии в
части механизмов проведения криптовалютных операций
и использования технологий блокчейн. При изучении
законодательства
Узбекистана
внимание
уделяется
последним проводимым реформам в сфере цифровизации
государственного управления и развития цифровой
экономики в нашей стране. При анализе законодательства
таких стран, как Германия и Чехия, приведены
соответствующие ситуации и примеры судебных решений
с целью определения эффективности правоприменения в
сфере технологий блокчейн и криптовалют и выявления
существующих проблем в этой сфере. В конце статьи
приведены
соответствующие
выводы
автора
и
предложения по совершенствованию законодательства
Республики Узбекистан.
Nowadays, in the Republic of Uzbekistan, as in other developing countries, an
effort is being made to develop the digital economy, which is accompanied by the
introduction of modern information and communication technologies in all sectors and
areas. Therefore, in order to accelerate the processes of digitalization, measures are
being taken to support the development of the domestic market for software products
and information technologies.
With the development of information technologies in the modern world, more and
more new terms and new technologies appear, on the basis of which many systematized
tasks of the daily activities of mankind are solved. We can also include the blockchain
system among such new technologies. The totality of new technologies in the field of
information and communication technologies is not fully regulated by law today,
including the legal regulation of the blockchain. In turn, this situation, to a certain extent,
also applies to relations adjacent to them.
According to the information and forecasts published by Forbs magazine [1],
blockchain can be applied in six main areas and cover numerous areas of activity starting
from 2021.
Table #1 [2]
SIX MAIN DIRECTIONS IN THE MARKET OF BLOCKCHAIN TECHNOLOGIES
Vaccination processes
Tracking and delivery of vaccines from the place of
production to patients.
Cooperative processes
Blockchain-based banking and financial services will become
popular.
NFT and its implementation
Non-fungible tokens (NFT, non-fungible token)
–
proof of
ownership. There is a possibility of application in the
organization of tracking the ownership of land and property,
vehicles.
Use of blockchain in services
Cloud computing, Internet of Things (IoT) and artificial
intelligence (AI).
Blockchain Knowledge
Lack of personnel in the field of blockchain technologies.
Popularity of stable coins
Stable coins help to protect the owners of cryptocurrency
from their constant fluctuations.
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
11 (2022) / ISSN 2181-1415
273
According to the definition of specialists from
“
The World Bank Group
”
,
“
blockchain
”
(the English word
“
blockchain
”
is translated as a chain of blocks) is
recognized as a way of recording and exchanging data between multiple data stores (also
known as ledgers), which each has exactly the same data records and are collectively
maintained, and are controlled by a distributed network of computer servers called
nodes [3].
In other words, blockchain is also called
“a technology with many faces”,
which
means “technology with many faces” [4]. Despite the fact that blockchain technology is
often associated with digital or virtual currency schemes, payments, and financial
services, its scope is much wider and can be applied in various sectors [5], for example, in
trade and commerce, healthcare, management, etc. [6]. In addition, it has numerous
potential applications. It can affect the pledge of collateral, the registration of shares,
bonds, and other assets, the transfer of property rights, the work of cadastres, etc. [eight].
The experience and some legislative norms in the field of blockchain regulation in
the EU Member States, as well as the international community, have also been
implemented in the legislation of Uzbekistan.
It should be noted that in Uzbekistan, from January 1, 2021, blockchain technology
began to be introduced into the activities of state bodies, in particular for public
procurement, verification of personal information, more efficient maintenance of
classifiers, regulation of certain aspects of management in the corporate sphere of
organizations in the statutory fund of which the state has a certain share.
According to PP-3832 of July 3, 2018, the entire set of these measures is aimed at
further improving business projects, ensuring the optimization of production,
administrative legal relations, and the introduction of modern management and resource
management that meet the trends of a market economy in modern society and law [8].
At the moment, the Republic of Uzbekistan has a comprehensive program
–
the
Strategy
“
Digital Uzbekistan
–
2030
”
, which includes a lot of policy documents, among which
we can include the regulatory regulation of the digital environment, as well as the
development of e-government, digital industry, digital education, and infrastructure. Priority
measures for the digitalization of civil law, for the introduction of ICT in the economy, social
sphere, and management systems are reflected in the Strategy of New Uzbekistan, and before
its adoption, in the Decree of the President
“
On the strategy of actions for the further
development of the Republic of Uzbekistan
”
No. 4947 of February 7, 2017.
Particularly noteworthy is the fact that the Republic of Uzbekistan is implementing
comprehensive measures to develop actively the digital economy, as well as the
widespread introduction of modern information and communication technologies in all
sectors and areas, primarily in public administration, education, healthcare, and
agriculture. In particular, the implementation of the integrated program "Digital
Tashkent", the creation of an information system for managing public transport and
communal infrastructure, and the digitalization of the social sphere with the subsequent
dissemination of this experience to other regions has begun [9].
Turning to the discussion of cryptocurrency, it is also necessary to give it an
appropriate definition. In addition, just like blockchain, cryptocurrency has become a
popular term for a wide range of technological developments using a technology known
as “cryptography”. In simple terms, “cryptography i
s the technique of protecting
information by converting (i.e. encrypting) it into an unreadable format that can only be
decrypted (or decrypted) by the owner of the secret key [10].
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
11 (2022) / ISSN 2181-1415
274
Here and below, we will try to give an appropriate definition of cryptocurrency
based on a critical analysis of definitions already developed by various interested
politicians at the European and international levels [12].
The European Central Bank classified cryptocurrency as a subgroup of virtual
currencies. In a 2012 report on virtual currency schemes, it defined such currencies as a
form of unregulated digital money that is usually issued and controlled by its developers
and used among the members of a money club, usually issued and controlled by their
developers, used and accepted among members of a particular virtual community [13].
It should be noted that the Republic of Uzbekistan has also taken measures to develop
and lay out the legal basis for the use and application of cryptocurrency in our territory.
According to the Decree of the President of the Republic of Uzbekistan No. PP-3832 of July 4,
2018 “On measures to develop the digital economy in the Republic of Uzbekistan”, where
“blockchain” technologies, “artificial intelligence”, the use of supercomputer capabilities,
as
well as activities on crypto assets are one of the directions of development of the digital
economy in many countries of the world [14]. According to this act, blockchain technologies
are gradually being introduced not only into many sectors of the economy but also into the
public administration system and other public relations.
In accordance with the Law of the Republic of Uzbekistan No. ZRU-701 of July 15,
2021 “On Licensing, Permitting and Notifying Procedures”, activities related to the
circulation of crypto-assets in Uzbekistan are subject to licensing. Residents of the
Republic of Uzbekistan have the right to enter into crypto exchanges exclusively
transactions for the sale of crypto-assets and tokens [15].
This means that citizens and legal entities registered in the Republic of Uzbekistan
cannot buy crypto-assets, but only sell to foreign citizens through the exchange. This
state of affairs hindered the development of the digital economy, including the circulation
of crypto assets in the Republic of Uzbekistan.
In view of this, in November 2021, Annex No. 1 “Regulations on the procedure for
licensing the activities of crypto-
exchanges”, approved by order of the National Project
Management Agency under the President of the Republic of Uzbekistan of January 21,
2019 No. 16, was amended. According to the latest changes, citizens of the Republic of
Uzbekistan have the right to buy cryptocurrency and tokens and carry out all
transactions related to them in Uzbek soums. However, non-residents of Uzbekistan can
carry out transactions with crypto-currencies only in foreign currency [16].
It should also be noted that according to the Rules on the Procedure for Licensing
the Activities of Cryptocurrency, the concept
of a crypto asset
is given the following
definition:
“a set of records in the blockchain that has value and an owner”,
and the
blockchain
is
“a distributed data registry in which all data is recorded sequentially and
distributed in blocks, with each new block linked to the previous block by a cryptographic
signature
. [ 17].
In addition, according to paragraph 7 of the Rules for the implementation of
crypto-exchange trading [18], crypto-assets cannot be used on the territory of the
Republic of Uzbekistan as a means of payment or payment acceptance. Also, the Law of
the Republic of Uzbekistan No. ZRU-
578 of February 3, 2020 “On Payments and Payment
Systems” regulates that this Law does not apply to operations with crypto
-assets. It all
follows from this that in the territory of the Republic of Uzbekistan, crypto-assets are
considered goods that can be sold on a certain platform (exchange) subject to certain
conditions, but not bought or exchanged, that is, they are limited in circulation.
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
11 (2022) / ISSN 2181-1415
275
Another important detail is that trading crypto assets outside of a crypto exchange
are recognized as a crime. Thus, as an example, we can cite a case opened in March
2021 [19], which took place in the city of Tashkent, people were detained while selling
cryptocurrency. They tried to illegally sell cryptocurrency for twenty-four thousand
dollars. Subsequently, these persons were prosecuted under articles 177 (illegal
acquisition or sale of currency values) and 190 (engaging in activities without a license)
of the Criminal Code of the Republic of Uzbekistan due to the fact that the activity on the
circulation of crypto-assets in Uzbekistan is subject to licensing, and operations must be
carried out in crypto. exchange, as we have already determined.
At present, we can say that the issues of legal regulation from "A" to "Z" are not
settled anywhere, however, there are countries that have made efforts to legally resolve
blockchain issues. Cryptocurrencies are legalized in more than 120 countries.
Table number 2.
LIST OF SOME COUNTRIES WHERE CRYPTOCURRENCY IS LEGALIZED
Japan.
At the moment, Japan is the most advanced state that treats
cryptocurrency liberally. Cryptocurrency in Japan are recognized as
virtual currencies, and can serve as a unit of payment for the purchase
of goods and services along with traditional money.
Switzerland. The official use of cryptocurrency was noted in
Switzerland in 2016, when they gave permission to accept
Bitcoin
as payment for public services. And in 2017, “sandboxes” were already
created for the development of cryptocurrency startups.
Singapore.
The legislation of Singapore does not give a definite
definition of cryptocurrency, as they recognize it as something in
between exchange-traded assets and traditional money.
In Singapore,
from 2017, it is planned to carry out tokenization and the transfer of the
national currency into digital form.
USA.
In America
Cryptocurrency are recognized as securities that are
subject to mandatory licensing. There is also a second category, “other
currencies”,
which do not require licensing. To carry out the activities of
crypto-exchanges, each state individually can set its own rules.
Sweden.
The Swedish authorities recognize cryptocurrency as a
means of payment, but its status is not yet legally fixed. At the same
time, transactions with cryptocurrency are legal, but there are some
restrictions on money laundering in accordance with the legislation on
combating money laundering and terrorism.
Czech Republic.
A feature of the legalization of crypto-currencies in
the Czech Republic is that no licensing and payment of taxes is required
to conduct a transaction with crypto-assets. At the same time, some
restaurants and shops in the Czech Republic accept cryptocurrency to
pay for goods and services.
Next, we will consider in detail the issues of legal regulation of blockchain
technologies and cryptocurrency based on the experience of such states as Germany and
the Czech Republic, which will allow us to draw conclusions regarding the effectiveness
of law enforcement practice in the field of blockchain and crypto assets.
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
11 (2022) / ISSN 2181-1415
276
Germany.
If we pay attention to the history of the development of the use of
blockchain systems in Germany, we can assume that this country was one of the first to
contribute to the development of blockchain technologies and crypto assets. The
evidence for this phenomenon is
the Decree [20] of the German Federal Financial
Supervisory Authority (BaFin) of 2013, according to which blockchain and
cryptocurrency are recognized as units of account. In turn, they are also payment units
(instruments), which is also enshrined in the German Law
“
On Credit Institutions
”
. [21].
a) The status of cryptocurrency.
In Germany, not all cryptocurrencies can be
recognized as digital money. And so, if you look from the point of view of BaFin,
cryptocurrency is not recognized as digital money, but in accordance
with the Law of the
Federal Republic of Germany
“on supervision in the payment system”, “digital money is
recognized as electronic (including magnetic) values that have a monetary value and are
issued by issuers in for the purpose of making a payment. An important criterion,
according to this law, for the recognition of a particular currency as digital money, is the
presence of a central issuer. In Germany, cryptocurrency and tokens are classified into
one of two categories: securities [22] or investments [23]. In this case, this kind of legal
relationship is regulated by the German legislative acts of the same name, such as the
Federal Republic of Germany Law
“
On Securities
”
and the Federal Republic of Germany
Law
“
On Money Investments
”
.
b) Restrictions.
According to the official warning of the German government,
"cryptocurrency is not a legal tender, but only a substitute for currency in certain private
legal relations."
[24].
As a result, in Germany, persons providing services in the cryptocurrency market
and engaged in it on a permanent commercial basis are required to obtain a license
issued by BaFin. [25].
Unlike the above, as of today, there are no restrictions regarding
“
payment tokens
”
.
For example,
“
Utility-Token
”
is not recognized as a security, which is enshrined in the
German Securities Act, or as an investment in accordance (VermAnlG). “Security tokens”
are interpreted a little differently, providing the owner with the
“rights of a securities
holder”
. They are recognized as securities under German law.
c) Blockchain technologies (smart contracts).
The legal regulation of smart
contracts in Germany is carried out in accordance with the generally established
principles of contract law. To date, the question regarding the recognition by the German
courts of decisions (contracts) that are adopted by program codes is unknown. However,
according to the electronic journal
“
IQ
decision”
, Germany has already defined the scope
of smart contracts: accounting, auditing; supply chain: applications powered by
blockchain technology will provide a fast and transparent supply chain; fintech: billions
worth of transactions can be transferred across continents within milliseconds;
healthcare: to optimize the process, as well as optimize settlements between patients and
health insurance funds [26].
d) Dispute resolution on blockchain and smart contracts in Germany.
In the
case number
"Ref. (4) 161 Ss 28/18 (35/18)”
of September 25, 2018, the German Court of
Appeal (Berlin) ruled that bitcoins are not recognized as payment units in the meaning of
KWG. In this case, the defendant sold
a “blockchain trading platform management”
through which bitcoins could be traded. The defendant did not have a proper license to
carry out this kind of activity, which is why the Court of First Instance fined him.
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
11 (2022) / ISSN 2181-1415
277
However, at a subsequent hearing in the Court of Second Instance, he was acquitted, as
“the sale of bitcoins on the German trading platform did not require a permit.”
This case
suggests that in Germany at the moment the issues of legal regulation of cryptocurrency
are not fully regulated and there is no unified approach to resolving such disputes, which
indicates the need for unification and improvement of German legislation in the field of
blockchain technologies.
However, European data protection regulations are applied in Germany. It
establishes that
“companies engaged in the use of Blockchain technology are required to
operate within the relevant regulatory framework, including data protection l
aw”
.
[27].
Czech Republic.
According to the authorities themselves,
The Czech Republic
recognizes itself as a liberal country in the field of cryptocurrency, as evidenced by the
opening of the first cafe in the world in Prague, where payment is made only in bitcoins.
In addition, the city has one of the highest Bitcoin ATM densities in the world, the first
hardware wallet and the first mining pool were developed in the Czech Republic, and gas
bills can be paid with Bitcoin.
Despite such freedom in the circulation of cryptocurrency, the Czech authorities,
like any other country, are trying to find ways to control the operations and exchanges of
cryptocurrency.
One of the reasons for the freedom of circulation of cryptocurrency in the Czech
Republic can be called the statement of the European Central Bank that
“cryptocurrency is
not a currency or a payment instrument and are not subject to regulation at the EU level.”
Consequently, such a statement led
to the adoption by the EU member states of separate
and different content regulatory legal acts [28].
According to the lawyer of the Czech Republic Martin Urban, when studying the
system of other EU countries, it was revealed that three types of approaches are mainly
used when regulating crypto assets:
“a) a
complete ban, b) careful state regulation, or d) a
liberal approach with the regulation of the most important aspects, such as the fight
against money laundering. The Czech Republic follows the third approach” [29].
In Czech legislation, there is no special legislative act regulating cryptocurrency
and trading in them. Cryptocurrencies are not considered legal currency in the Czech
Republic and the Czech National Bank takes a fairly loose stance on any regulation of
cryptocurrency. However, the Czech Law [30] on
“certain measures against the
legalization of proceeds from crime and the financing of terrorism”
, in the latest edition,
contains a list of obligated entities, which includes persons providing services related to
virtual currencies, i.e. those who buys, sells, holds, manages or brokers the purchase or
sale of virtual currencies or provides other services related to such currencies as a
business.
A virtual currency is defined as
"a unit held digitally, regardless of the existence of
its issuer, that is not a fiat currency
,
but is accepted as payment for goods or services by a
person other than the issuer",
in accordance with the Payment System Law. Since this
definition is quite broad, it also covers cryptocurrency. As a result, online payment
gateway operators that allow virtual currency transfers, virtual currency exchanges, or
virtual currency trading platforms are required to conduct identity checks on their
customers, report suspicious transactions, archive customer information, and comply
with other obligations provided by the Law by this law.
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
11 (2022) / ISSN 2181-1415
278
However, according to the Law on the Payment System, cryptocurrency, as a rule,
do not fall under the definition of electronic money, since the following definition is given
there: “electronic money is a mon
etary value that represents a claim on the person who
issued it, is stored in an electronic form, is issued against the receipt of funds for the
purpose of making payment transactions and is received by a person other than the
person who issued it [31].
In most cases, cryptocurrencies do not meet the first requirement of the definition,
as they are not a requirement of the currency of a certain country in relation to the
central bank of that country, credit institutions, or other payment system providers.
Thus, a license issued by the Central National Bank is not required to issue or carry out
transactions with cryptocurrency. However, a CNS license is required if the digital token
is linked to a fiat currency and represents the right of its holder to exchange the token for
that fiat currency.
a) Money laundering legislation. [32].
As a member of the EU, the Czech Republic
is subject to EU anti-money laundering rules. In July 2018, the EU adopted AMLD5 and
required EU countries to regulate cryptocurrency exchanges and wallets operating in
Europe. The Czech Republic has implemented a stricter legal model than AMLD5,
requiring that every company engaged in cryptocurrency transactions must comply with
Czech law. Thus, the Czech AML rules apply to anyone who provides crypto-currency
services, including
“those who buy, sell, store, manage
or intermediary in the purchase or
sale of crypto-
currencies or provide other services related to such currencies as a business”
.
Accordingly, the Czech Republic regulates more crypto-related businesses than the
EU, which only regulates crypto exchanges and wallets. Any firm that fails to register its
activities with the Czech government will be fined up to half a million CZK, or about
US$20,000. Thus, domestic regulations in the Czech Republic are more stringent than
required by AMLD5.
b) Registration of crypto exchanges in the Czech Republic.
In the Czech Republic,
the types of licenses that an enterprise can obtain are divided into one of four categories
depending on the use of cryptocurrency: classic, fiat, traditional or specialized.
Classic licenses allow companies to exchange cryptocurrency for another
cryptocurrency. For example, a classic license allows a company to exchange bitcoin for
an Ethereum token.
In contrast, fiat licenses allow organizations to exchange
“
real money
”
for
cryptocurrency. Accordingly, fiat licenses allow companies to sell bitcoins in exchange for
euros.
The third category, traditional licenses, give subjects
“
control over the procedure
for manipulating currencies of all kinds
”
. In contrast, specialized licenses provide fewer
powers, extending control only to the operation of cryptocurrency enterprises.
To register as a cryptocurrency exchange in the Czech Republic, an enterprise must
go through several stages [33]:
First stage.
Czech officials must be notified of the name of the cryptocurrency
enterprise and this name must be verified.
Second phase.
It is necessary to provide an identity document of the future owner
of the enterprise, as well as a certificate of no criminal record. Presumably, people with a
criminal record will not be issued a license.
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
11 (2022) / ISSN 2181-1415
279
Third stage.
Fulfill the residency requirement by having a legal address in the
Czech Republic for at least one year. According to the fourth requirement, the future
owner must keep the business's books, hire employees, and purchase the necessary
software and hardware to run the business.
Final stage.
Upon registration, the owner must complete three steps to register a
cryptocurrency exchange in the Czech Republic. These actions include:
▪
Provide a complete package of all relevant documents relating to the company.
▪
Pay state fees.
▪
Provide all collected papers to the relevant legal entities in the territory of the
Czech Republic.
Thus, it can be said that the regulation of cryptocurrency is still in its infancy, and it
is not yet clear whether the European Union will ultimately decide to consider this issue
at the EU level or leave it to the discretion of the member states.
The Republic of Uzbekistan.
In order to create the basis and regulate the
activities of crypto assets and blockchain technology in the sphere, the Director of NAPM
Order No. 3926
“
On the organization of the activities of crypto exchanges
”
. According to
these rules, the activities carried out by the crypto exchange are subject to licensing.
To obtain a license, you must perform the following steps:
1. have a formed statutory fund in the amount of at least 761,000 US dollars as of
the date of application, of which 305,000 US dollars are reserved in a separate account
with a commercial bank of the Republic of Uzbekistan;
2. availability of a functioning electronic system of crypto-exchange trading, hosted
on servers located in Uzbekistan, and meeting the requirements provided for by the
Regulations on the procedure for licensing the activities of crypto-exchanges;
3. the existence of crypto-exchange trading rules, which must necessarily reflect:
▪
the procedure for admitting participants to crypto-exchange trading;
▪
measures aimed at ensuring compliance with the requirements of legislation on
combating the legalization of proceeds from crime, the financing of terrorism, and the
financing of the proliferation of weapons of mass destruction;
▪
the procedure for admission to circulation and exclusion from circulation of
crypto assets;
▪
the procedure for the implementation and registration of transactions with
crypto assets;
▪
the procedure for mutual settlements of participants in crypto-exchange trading
when concluding transactions.
▪
the amount of the fee for using the services of the crypto exchange and the
procedure for determining it;
▪
measures to prevent the manipulation of prices on the crypto exchange and the
misuse of confidential information;
▪
a ban on the use of crypto assets for illegal purposes;
4. implementation of quotations for crypto assets based on the ratio of supply and
demand for them;
5. storage for 5 years of information about transactions with crypto assets of
clients, as well as their identification data and materials on customer relationships,
including business correspondence.
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
11 (2022) / ISSN 2181-1415
280
Currently, only one crypto exchange operates in Uzbekistan, which received a
license at the end of December 2019
–
UzNEX. This is a project of the Korean company
Kobea Group.
At the moment, in the Republic of Uzbekistan, the circulation of crypto assets
proceeds only in one direction, i.e. on the principle of recognizing them as assets or
securities on the example of Germany. However, looking at the experience of the Czech
Republic, we can say that the following changes should be made to the legislation of the
Republic of Uzbekistan:
1.
Unify legislation in the field of circulation of cryptocurrency in the territory of
the Republic of Uzbekistan.
2.
Adopt a separate law of the Republic of Uzbekistan “On Cryptocurrency”, where
the concept of this term should be clearly clearly defined and recognized as a virtual
currency, which would allow it to be used as a unit of payments on the example of the
Czech Republic and determined the procedure for exchanging them for real (fiat money).
3.
Taking into account the development of the cryptocurrency market, allow real
estate transactions, where the contract amount will also be recognized as
cryptocurrency.
Summing up the results of the comparative analysis and considering the provisions
of laws on crypto-assets in a number of countries, we can conclude that the creation of a
prosperous and transparent environment in the Republic of Uzbekistan for the
development of crypto-assets will undoubtedly contribute to the development of the
digital economy and will allow controlling the circulation of crypto-assets.
REFERENCES:
1.
World Bank Group (H. Natarajan, S. Krause, and H. Gradstein
), “Distributed
Ledger Technology (DLT) and blockchain”, 2017, FinTech note, no. 1.
Washington, D.C. |
World Bank Document.
2.
P. Witzig and V. Salomon
, “Cutting out the middleman: a case study of
blockchain-induced reconfigurations in the Swiss Financial Se
rvices Industry”, Working
Paper 1, 2018/E, the Circulation of Wealth, Université de Neuchâtel].
3.
World Bank Group (H. Natarajan, S. Krause and H. Gradstein
), “Distributed
Ledger Technology (DLT) and blockchain”, 2017, FinTech note, no. 1.
Washington, D.C.]
4.
CPMI, “Digital currencies”, November 2015, https://www.bis.org/cpmi/publ/d137.pdf, 15]
5.
W. Holden
, “Bringing Blockchain to Land Registry”, January 2018].
6.
Постановление Президента Республики Узбекистан, №ПП
-
3832 от 3 июля
2018 года «О мерах
по развитию цифровой экономики в Республике Узбекистан»
// Источник: www.lex.uz].
7.
Указ Президента Республики Узбекистан «Об утверждении стратегии
«Цифровой Узбекистан
–
2030» и мерах по ее эффективной реализации», 5 октября
2020 г., № УП
-
6079 // Источник
: https://lex.uz/docs/5031048].
8.
J. Faulkner, Getting started with Cryptography in .NET, Munchen BookRix, 2016, 6.
9.
R. Houben,
“
Bitcoin: there two sides to every coin
”
, ICCLR, Vol. 26, Issue 5, 2015,
195. Also see above under 2.1.2. How a blockchain works the basics.
10.
Hence, we do not explore definitions used at national level.
11.
ECB, “Virtual Currency Schemes”, October 2012,
https://www.ecb.europa.eu/
pub/pdf/other/virtualcurrencyschemes201210en.pdf.]
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
11 (2022) / ISSN 2181-1415
281
12.
Постановления Президента Республики Узбекистан № ПП
-3832
от 04.07.2018 «О мерах по развитию цифровой экономики в Республике
Узбекистан».
13.
Приказ Национального агентства проектного управления при
Президенте Республики Узбекистан № 3127 от 23.01.2019 «Об утверждении
положения о порядке лицензирования деятельности крипто
-
бирж».
14.
Приказ директора национального агентства проектного управления при
президенте республики Узбекистан о
внесении изменений и дополнений в
приложение №1а Положения о порядке лицензирования деятельности крипто
-
бирж
| https://lex.uz/pdfs/5737126.
15.
Приказ Национального агентства проектного управления при
Президенте Республики Узбекистан № 3127 от 23.01.2019 «Об утверждении
положения о порядке лицензирования деятельности крипто
-
бирж».
16.
https://www.gazeta.uz/ru/2021/03/05/bitcoin/
17.
Blockchain & Cryptocurrency Regulation 2019, First Edition
–
Global Legal
Group Ltd, London
—
Germany // URL: www.globallegalinsights.com]
18.
Gesetz über das Kreditwesen (Kreditwesengesetz, KWG) // URL:
https://www.gesetze-im-internet.de/kredwg/ BJNR008810961.html].
19.
Gesetz über den Wertpapierhandel // URL:
https://www.gesetze-im-
internet.de/wphg/]
либо
к
инвестициям
20.
Gesetz über den Vorrang für Investitionen bei Rückübertragungsansprüchen
nach
dem
Vermögensgesetz
(Investitionsvorranggesetz,
InVorG)
//
URL:
https://www.gesetze-im-internet.de/invorg/BJNR012680992.html].
21.
Public
warning
dated
2
February
2018
//
URL:
https://www.bundesregierung.de/Content/DE/
Artikel/2018/02/2018-02-02-
kryptowaehrung.html].
22.
Blockchain & Cryptocurrency Regulation 2019, First Edition].
23.
https://iqdecision.com/tehnologija-blokchejn-v-germanii-obzor-pravovyh-
ramok-i-kljuchevyh-voprosov/].
24.
https://gdpr-info.eu/].
25.
Registration of a Cryptoexchange in the Czech Republic
‖ Eternity Law
International.
(2020,
November
11).
Eternity
Law
International.
https://www.eternitylaw.com/ready-licenses-for-sale/registration-of-a-cryptoexchange-
in-the-czech-republic/]
26.
https://talkingtech.cliffordchance.com/en/industries/fintech/overview-of-
regulation-of-cryptocurrencies-in-the-czech
republic.html#:~:text=Martin%20Urban%2C%20Junior%20Lawyer%2C%20contribute
d%20to%20the%20writing%20of%20this%20article].
27.
the Czech AML Act (Act No. 253/2008 Coll., on Selected Measures against
Legitimisation of Proceeds of Crime and Financing of Terrorism]
28.
Act No. 370/2017 Coll., on Payment System].
29.
Regulation of Cryptocurrency Around the World. (2014). Loc.gov.].
30.
Czech Republic to Broaden Crypto Regulation. Bitcoin Magazine.]
31.
Рахмонова
М. Проблемы правоприменительной практики защиты прав
на товарные знаки и возможные пути их разрешения
// Review of law sciences.
–
2020.
–
Т. 2. –
№. Спецвыпуск.
Жамият
ва
инновациялар
–
Общество
и
инновации
–
Society and innovations
Special Issue
–
11 (2022) / ISSN 2181-1415
282
32.
Мукумов
Б. Оценка регулирующего воздействия нормативно
-
правовых
актов на предпринимательскую деятельность в условиях пандемии коронавируса
(на примере Торгово
-
промышленной палаты Республики Узбекистан) //
Review of
law sciences.
–
2020.
–
№. 2.
33.
Хужаев
Ш. Совершенствование правовых механизмов регулирования
банковских услуг //
Общество и инновации. –
2020.
–
Т. 1. –
№. 1. –
С. 97–
106.
