Uzbekistan, a country in Central Asia has made a new law that will allow crypto disputes to be settled amicably. This will be made possible by setting up an Arbitrage mechanism controlled by local and foreign bodies. It will help to foster the growth of several industries as well as the Blockchain community.
President Signs Arbitrage Mechanism into Law
The Arbitrage mechanism was as a result of a Presidential decree in the country. Here, the President, Shavkat Mirziyoyev signed some documents to that effect. It aims to resolve any disputes that are related to investments, intellectual properties, and cryptocurrency technology. Therefore, the mechanism will handle disputes among local and foreign entities, and those that need the state’s intervention.
The mechanism will be actualized by a team of experts in the field. Also, it will be carried out at an arbitration centre known as the Tashkent International Arbitration Center (TIAC). TIAC will be placed under the country’s Chamber of Commerce and industry. Its role is to handle these disputes and also prevent any that may be inevitable in the future.
TIAC to be Guided by On International Arbitration Law
To keep the centre in check, a law which is known as “On International Arbitration” will be made to serve as a guideline for the centre to follow. Moreover, there is also a supervisory board that will monitor its operation. This will be a team made up of international experts who will ensure that TIAC implements foreign standards.
TIAC is also mandated to offer financial advice to local and foreign investors that want to use Uzbekistan as their investment ground. Law is expected to be drafted which will guide the operations of this supervisory board. As a result, the centre’s mode of operation will be on a legal basis. Its ruling will also be made final and as such will be enforced in the country.
Government’s Effort in Fostering Crypto and Blockchain Technology
It can be noted that the Government has been working of late to foster the growth of cryptocurrency and Blockchain technology in the country. Some companies which are the Uzbekenergo and Uzbekgidroenergo were recently asked to allocate some plots of land that will be used to build facilities for mining.
It can also be recalled that in July this year, there was a proposition to legalize crypto transactions as well as those related to mining and the Blockchain. This was going to be a licensing mechanism that will allow crypto-related industries to operate within legal grounds. Therefore, one more step in the right direction is to handle the disagreements between parties which may occur likely in this industry.