Tajikistan and Cryptocurrency
Tajikistan Cryptocurrency Laws
Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology
Cryptocurrency is neither legal nor illegal in Tajikistan.[1] Cryptocurrency is still fairly controversial, and no formal regulation has been enacted by the government.[2] Instead, on January 15, 2018, the National Bank of Tajikistan (NBT) issued a statement expressing that cryptocurrency could not be considered an official means of exchange or savings, or a unit of account. Further, it warned against the increased risks of cyber-attacks, money laundering, terrorist financing, criminal transactions, and losses associated with the use of cryptocurrencies, emphasizing that it was not responsible for any risks or losses incurred by participation in the cryptocurrency trade.[3]
In the long term, the Ministry of New Technology in Tajikistan hopes to create a central bank digital currency (CBDC) of its own. In the meantime, the Ministry of New Technology has partnered with Fantom Foundation to build various customer relationship management (CRM) and management information system (MIS) tools and set up a local blockchain research and development (R&D) hub within its borders.
In April 2021, Comparitech published an annual report ranking Tajikistan as the least cybersecure country in the world, with one of the highest percentages of local malware attacks and other attacks from crypto miners.[4]
P.S. Insights on Cryptocurrency Legal Issues
Most jurisdictions and authorities have yet to enact laws governing cryptocurrencies, meaning that, for most countries, the legality of crypto mining remains unclear.
Under the Financial Crimes Enforcement Network (FinCEN), crypto miners are considered money transmitters, so they may be subject to the laws that govern that activity. In Israel, for instance, crypto mining is treated as a business and is subject to corporate income tax. In India and elsewhere, regulatory uncertainty persists, although Canada and the United States are relatively friendly to crypto mining.
However, apart from jurisdictions that have specifically banned cryptocurrency-related activities, very few countries prohibit crypto mining.
Our Freeman Law Cryptocurrency Law Resource page provides a summary of the legal status of cryptocurrency for each country across the globe with statutory or regulatory provisions governing cryptocurrency. The globe below provides links to country-by-country summaries:
Is cryptocurrency legal in Tajikistan?
Do you have questions about cryptocurrency, digital currencies, or blockchain technology?
Freeman Law can help with digital currencies, tax planning, and tax compliance. Contact us now to schedule a consultation, or call (214) 984-3410 to discuss your cryptocurrency and blockchain technology concerns.
[1] Stephen O’Neal, From Kazakhstan to Uzbekistan: How Cryptocurrencies Are Regulated in Central Asia, Cointelegraph (September 15, 2018).
[2] Training Education Team, Cryptocurrency Regulation Around the World In 2019 Ranked! Trading Education Global Financial Education (July 23, 2021).
[3] Library of Congress, Cryptocurrency, Loc.gov; Abdullo Ashurov, The National Bank of Tajikistan clarified its position on cryptocurrencies, Rus.ozodi.org (January 15, 2018).
[4] Paul Bischoff, Which countries have the worst (and best) cybersecurity? Comparitech (September 26, 2022).
