Uzbekistan Enacts Penalties for Illegal Cryptocurrency Activities

On January 19, Uzbekistan’s President Shavkat Mirziyoyev signed a law introducing criminal and administrative penalties for illegal activities related to cryptocurrency mining and use.

The Code of Administrative Responsibility has been amended with two new articles.

One article addresses the illegal acquisition, sale, or exchange of cryptocurrencies, as well as the activities of service providers without a license. It stipulates administrative detention of up to 15 days or a fine ranging from 20 to 30 basic calculation values (BRV), with confiscation of crypto assets and tools used in the offenses.

Transactions involving anonymous cryptocurrencies result in fines for officials ranging from 30 to 40 BRV.

The second article introduces penalties for illegal mining—administrative detention of up to five days or a fine from 20 to 30 BRV. The same act on a large scale results in detention of up to 15 days or a fine from 50 to 100 BRV, with equipment confiscation.

Mining of anonymous cryptocurrencies by officials is punishable by a fine from 30 to 40 BRV with confiscation.

Should these offenses be repeated after administrative penalties, criminal liability is imposed.

Illegal cryptocurrency sales and operating without a license are punishable by a fine of up to 100 BRV, corrective labor for two to three years, or restriction of freedom for up to a year, or imprisonment for up to a year. In cases of significant damage using official position, imprisonment ranges from three to five years.

Illegal mining and mining of anonymous coins are subject to a fine of up to 100 BRV, corrective labor for two to three years, or restriction of freedom for up to a year, or imprisonment for up to a year.

Concealed mining entails a fine from 100 to 300 BRV or restriction of freedom for up to two years, or imprisonment for up to two years.

Actions committed using official position or by an organized group are punishable by imprisonment from three to five years.

Amendments to the law exempt individuals from liability if they voluntarily report a planned or ongoing crime and actively assist in its disclosure.

The new sanctions and penalties take effect on April 19, 2024.

Earlier in January, Uzbek authorities fined the Bitcoin exchange Binance for several violations, including providing services without registering a legal entity in the country.