Uzbekistan teams up with Tether (USDT) to establish a crypto regulatory framework
Tether firm signed a MoU with the Uzbekistan government to make the country the centre of crypto & blockchain hub.
Uzbekistan is a friendly jurisdiction for the crypto traders. Since 2018, crypto trading & mining is fully legal & tax-free. However, cryptocurrencies are not recognised as legal tender in this country but people are allowed to engage in this innovative market via local crypto firms which are registered as virtual asset service providers (VASPs).
On 7 March 2024, Tether announced that the firm signed a Memorandum of understanding (MoU) with the National Agency of Perspective Projects (NAPP) of the Republic of Uzbekistan to promote the legal framework development and push the adoption of Bitcoin, stablecoins, blockchain technology, P2P, and digital asset tokenization in the country.
Uzbekistan aims to elevate its blockchain ecosystem and establish itself as a prominent global leader through this strategic collaboration. The initiative also seeks to bolster local startups, attract international technology firms and professionals, and solidify Uzbekistan’s status as a thriving tech hub.
Notably over the last couple of years, many countries showed significant Inclination toward this innovative sector, to attract crypto companies & investment.
For example, Kazakhstan invited crypto mining companies in 2021 following China’s crypto blanket ban, and in 2023 Hong Kong invited crypto exchanges to set up business in the country, El Salvador attracted multiple crypto companies in the last three years with the adoption of Bitcoin as a legal tender.
Tether & challanges
It is worth it to note that Tether faced huge criticism & public pressure in 2022 because of debt pressure in connection with Chinese companies. Later Tether started to report its all financial activities in each quarter of the year and now the company is standing in a much better position.
In Dec 2023, Tether generated a $1.1 billion profit from only a USDT transaction fee.
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