Uzbekistan has announced new regulations that will double the fees imposed on cryptocurrency exchanges and retailers operating within its borders.

The revised fee structure, announced on March 19th by the National Agency for Prospective Projects (NAPP), follows an assessment that crypto firms have attained “sufficient profitability” in the market. The changes modify an earlier mandate established in September 2022 by the Ministry of Justice.

The NAPP anticipates that this overhaul will lead to a doubling of state revenues derived from the crypto sector without jeopardizing industry participants’ financial stability.

Under the updated regime, crypto exchanges will see their monthly obligations skyrocket to 740 basis reference value (BRV), equivalent to a hefty 251.6 million Uzbekistani som (approximately $20,015). This replaces the previous fee of 400 BRV or 136 million som ($10,819). Cryptocurrency retailers will bear a significantly higher burden, with fees escalating from 20 BRV (around 6.8 million som or $540) to 185 BRV (62.9 million som or $5,003) per month.

In November 2022, Uzbekistan began granting licenses to local crypto firms, marking a shift from its previous hard-line approach that saw the blockade of major international exchanges over allegations of unlicensed activities.

The new fee structure is scheduled to take effect on June 20, 2024, three months after its official publication.