On the organization of the activities of the national agency of perspective projects of the Republic of Uzbekistan (RP-3150-son)

27.07.2017

RESOLUTION

OF THE PRESIDENT OF THE REPUBLIC OF UZBEKISTAN

[Extract]

In accordance with the Decree of the President of the Republic of Uzbekistan dated July 24, 2017, No. DP-5120 «On measures of introduction of project management system in the Republic of Uzbekistan» it shall be hereby resolved:

1. To approve:

The structure of the National agency of perspective projects of the Republic of Uzbekistan in accordance with Appendix No. 1;

Regulations on the National agency of perspective projects of the Republic of Uzbekistan in accordance with Appendix No. 2.

2. To authorize the director of the National agency of perspective projects of the Republic of Uzbekistan (hereinafter referred to as the Agency):

To make, if necessary, changes in the structure and staffing of the Agency, including the introduction of additional staff units, as well as independently determine the conditions for remuneration of employees of the Agency;

To attract as consultants highly qualified employees of state bodies, economic management bodies, state enterprises and organizations (hereinafter referred to as state bodies and other organizations), non-governmental non-profit organizations, leading design institutes, scientific and educational institutions, as well as international organizations, foreign companies and specialists.

3. To determine that:

a) The Agency is a state institution with the rights of a legal entity and in its activities shall report to the President of the Republic of Uzbekistan;

b) The Agency is an authorized body for the development of the sphere of crypto-assets turnover, licensing of activities and permissive procedures in this sphere;

c) within the structure of the Agency there a Specialized laboratory for testing and studying innovative technologies in the sphere of crypto-assets turnover shall be formed without forming a separate legal entity (hereinafter referred to as the Laboratory);

d) the activities of the Laboratory are not subject to the requirements of legislative acts on licensing and permitting procedures in the sphere of crypto-assets turnover, with the exception of requirements to comply with the prohibitions provided for by law;

e) sources of funding for the Agency's activities are:

grants, credits and loans, including in crypto-assets;

deductions from the licensing and permitting procedures carried out by the Agency in the amount determined by legislative acts;

charitable donations, including in crypto-assets, of legal entities and individuals, including foreign ones;

income from shares (interests, stocks) owned by the Agency in the charter capital (charter fund) of legal entities in the amounts provided for by law;

funds received from the implementation of projects on the terms of public-private partnership;

income from the placement of temporarily free funds of the Agency in banks;

other income not prohibited by legislative acts;

f) The Agency has the right to sell, under direct contracts, to non-residents of the Republic of Uzbekistan, crypto-assets received as charitable donations, grants and loans, in the course of the Laboratoryʼs activities, also turned into state revenue by a court decision, at the rate set on the day of sale on the national crypto-assets exchange;

g) The Agency shall, without fail, verify the sources of origin of crypto-assets received by it as charitable donations, grants and loans;

h) The Agency shall establish a Special Regulatory Regime in the Sphere of Crypto Assets Turnover (Special Regulatory Sandboxes Regime), which provides for the creation of special organizational and legal conditions for legal entities implementing technologies in the sphere of crypto assets turnover;

i) as part of the implementation of pilot projects in the Special Regulatory Sandboxes Regime:

participants of the Special Regulatory Sandboxes Regime are exempted from paying all types of taxes and obligatory payments to state funds, as well as customs payments (except for customs fees) for equipment, components, parts, assemblies, technological documentation, software imported for their own needs, not produced in the Republic of Uzbekistan, according to the lists approved in the prescribed manner;

income in the form of wages received by employees under employment contracts with participants of the Special Regulatory Sandbox Regime is subject to personal income tax at a flat rate of 7.5 percent and is not included in the total annual income of individuals determined for tax purposes.

4. That director of the Agency within two months shall ensure:

staffing of the Agency with highly qualified specialists with the necessary theoretical knowledge and practical skills, capable of ensuring the implementation of the tasks assigned to the Agency at a professional level;

approval of the Regulations on the structural subdivisions of the Agency.

5. To determine that:

The Agency, in carrying out its tasks, interacts with state bodies and other organizations, non-governmental non-profit organizations, leading design institutes, scientific and educational institutions, business entities, as well as diplomatic missions and consular offices of foreign states in the Republic of Uzbekistan, international organizations, foreign companies and specialists, including through business correspondence, organizing events and concluding framework agreements;

The Agency conducts inspections of compliance with licensing and permitting requirements and conditions in the field of crypto-assets turnover, applies penalties in the prescribed manner, including for non-compliance with the requirements of legislative acts on combating the legalization of proceeds from criminal activity, financing of terrorism and financing of the proliferation of weapons of mass destruction;

draft regulatory legal acts on issues within the scope of the Agency's activities are subject to mandatory review by the Agency.

12. That the State Committee of the Republic of Uzbekistan for the Promotion of Privatized Enterprises and the Development of Competition and the Khokimiyat of the city of Tashkent, within two weeks, provide the Agency with the building necessary to fulfill the tasks assigned to it.

13. That the Ministry for the Development of Information Technologies and Communications of the Republic of Uzbekistan, in the prescribed manner, provide the Agency with the necessary means of communication, including government communications.

14. That the National Television and Radio Company of Uzbekistan and the National News Agency organize wide coverage in the media of the ongoing work on the implementation of the Unified National Information System for Project Management of the Republic of Uzbekistan.

15. That the Agency and the Ministry of Justice of the Republic of Uzbekistan, together with other interested ministries and departments, before September 1, 2017:

submit proposals to the Cabinet of Ministers of the Republic of Uzbekistan on amendments and additions to the legislation arising from this resolution;

ensure that departmental regulatory legal acts are brought in compliance with this resolution.

16. To impose control over the execution of this resolution on the Prime Minister of the Republic of Uzbekistan A.N. Aripov and the Prosecutor General of the Republic of Uzbekistan I.B. Abdullayev.

President of the Republic of Uzbekistan Sh. MIRZIYOYEV

Tashkent,

27 july 2017 y.,

№ RP-3150

APPENDIX No. 1 to the Resolution of the President of the Republic of Uzbekistan dated July 27, 2017, No. RP-3150

STRUCTURE

of the National Agency of perspective Projects of the Republic of Uzbekistan

Director First Deputy Director Deputy Director Claim Processing Department 1 u. Organizational and control Department 1 u. Crypto assets turnover sphere Development Department 6 u. International Relations Department 2 u. Department on the implementation ofdistributed data registrytechnology 4 u. Information and Analytics Department 4 u. Public Relations Department 2 u. Accounting Department 2 u. Internal Anti-corruption Department 1 u. Human Resources 2 u. Licensing and Permissive procedures Department 4 u. Specialized laboratory for testing and studying innovative technologies in the sphere of crypto-assets turnover Department for IT infrastructure support and cyber security 4 u. Regulatory Impact Sector 2 u. Legal Department 2 u. First Department 1 u. Chancellery 2 u. Business Administration Department 2 u. Sector for the Special Regime Of regulation in the sphere of crypto assets turnover ("Regulatory Sandbox")

Note:

The total number of the Agency's management personnel is 45 units.

APPENDIX No. 2 to the Resolution of the President of the Republic of Uzbekistan dated July 27, 2017, No. RP-3150

REGULATIONS

On the National agency of perspective project of the Republic of Uzbekistan

Chapter 1. General provisions

1. These Regulations determine the status, main tasks, functions, rights and obligations, organizational framework for the activities of the National Agency of Perspective Projects of the Republic of Uzbekistan (hereinafter referred to as the Agency).

2. The Agency in its activities reports to the President of the Republic of Uzbekistan.

3. The Agency is a state institution with the right of a legal entity, has a seal and letterheads with its name and the image of the State Emblem of the Republic of Uzbekistan, treasury accounts on the Single Treasury Account for budgetary and non-budgetary funds generated from state duties and other fees in accordance with the law, as well as accounts in commercial banks of the Republic of Uzbekistan for grants, credits, loans and charitable donations.

The Agency is an authorized body for the development of the sphere of crypto-assets turnover, licensing of activities and licensing procedures in this area.

4. The Agency in its activities is guided by the Constitution and laws of the Republic of Uzbekistan, resolutions of the chambers of the Oliy Majlis of the Republic of Uzbekistan, decrees, resolutions and orders of the President of the Republic of Uzbekistan, these Regulations and other legislative acts.

5. When performing the tasks assigned to it, the Agency interacts with state bodies, economic management bodies, state enterprises and organizations (hereinafter referred to as state bodies and other organizations), non-state non-profit organizations, leading design institutes, scientific and educational institutions, business entities, as well as diplomatic missions and consular offices of foreign states in the Republic of Uzbekistan, international organizations, foreign companies and specialists, including through business correspondence, organizing events and concluding framework agreements.

6. Decisions of the Agency, adopted within its powers, are binding on state bodies and other organizations, business entities, regardless of ownership and departmental subordination, individuals.

7. Official name of the Agency:

a) in the state language:

full — Oʼzbekiston Respublikasi Istiqbolli loyihalar milliy agentligi, abbreviated — Istiqbolli loyihalar agentligi;

b) in English:

full — National Agency of Perspective Projects of the Republic of Uzbekistan, abbreviated — Perspective Projects Agency;

c) in Russian:

full — Национальное агентство перспективных проектов Республики Узбекистан, abbreviated — Агентство перспективных проектов.

Chapter 2. Main tasks and functions of the Agency

8. The main tasks of the Agency are as follows:

development and implementation of a unified state policy in the sphere of crypto-assets turnover;

ensuring the observance of the rights and legitimate interests of in the sphere of crypto-assets turnover;

participation in the development and implementation of measures to combat the legalization of proceeds from criminal activity, the financing of terrorism and the financing of proliferation of weapons of mass destruction in the sphere of crypto-assets turnover;

initiating and facilitating the promotion of projects for the implementation of distributed data registry technology and other latest technologies in public administration and various areas of socio-economic development.

9. The Agency, in accordance with the tasks assigned to it, performs the following functions:

a) in the field of development and implementation of a unified state policy in the sphere of crypto-assets turnover:

carries out the development of proposals for determining priority areas for further development and improvement of legislation in the sphere of crypto-assets turnover;

develops state and other programs in the sphere of crypto-assets turnover, assists in their implementation;

develops draft regulations on the legal regulation in the sphere of crypto-assets turnover;

conducts an examination of draft regulatory legal acts providing for the turnover of crypto-assets;

establishes the procedure and carries out licensing and permissive procedures in the sphere of crypto-assets turnover, as well as monitors compliance with licensing and permitting requirements and conditions;

determines the Special Regulatory Regime in the sphere of crypto-assets turnover (the Special Regulatory Sandbox Regime), acting in accordance with the Appendix to this Regulation;

develops and approves standards, norms and rules in the sphere of crypto-assets turnover;

organizes training for employees of state bodies and other organizations in the sphere of crypto-assets turnover;

interacts with scientific and educational institutions on the issues of training employees of state bodies and other organizations in the sphere of crypto-assets turnover;

carries out international cooperation in the sphere of crypto-assets turnover;

conducts a systematic analysis of legislative acts and preparation of proposals for improving the sphere of crypto-assets turnover;

on instructions of the President of the Republic of Uzbekistan and on its own initiative, develops draft regulatory legal acts and submits them for consideration in the prescribed manner;

b) in the field of ensuring the observance of the rights and legitimate interests of investors in the sphere of crypto-assets turnover:

takes measures to protect the rights and legitimate interests of investors in the sphere of crypto-assets turnover;

applies measures in accordance with legislative acts in case of detection of violations of the laws in the sphere of crypto-assets turnover;

organizes broad informing of investors and the public about the state of development of the sphere of crypto-assets turnover, including publishing in the media and (or) on its official website information on the state of development of the sphere of crypto-assets turnover on an ongoing basis, takes measures to increase the level of literacy of the population in the sphere of crypto-assets turnover;

c) in the field of participation in the development and implementation of measures to combat the legalization of proceeds from criminal activity, the financing of terrorism and the financing of the proliferation of weapons of mass destruction in the sphere of crypto-assets turnover:

participates in the development and implementation of measures to combat the legalization of proceeds from criminal activity, the financing of terrorism and the financing of the proliferation of weapons of mass destruction;

develops and approves in accordance with the established procedure the rules of internal control for persons carrying out activities in the sphere of crypto-assets turnover, as well as monitors and controls their compliance;

studies, analyzes and evaluates the possible risks of legalization of proceeds from criminal activity, the financing of terrorism and the financing of the proliferation of weapons of mass destruction, and also takes measures to reduce the identified risks;

participates in accordance with the established procedure in international cooperation in the field of combating the legalization of proceeds from criminal activity, the financing of terrorism and the financing of the proliferation of weapons of mass destruction;

ensures the fulfillment of obligations arising from the Agreement on the Eurasian Group on Combating Money Laundering and Financing of Terrorism;

takes measures in accordance with legislative acts in case of detection of violations of legislative acts on combating the legalization of proceeds from criminal activity, the financing of terrorism and the financing of the proliferation of weapons of mass destruction;

exercises control over the completeness and reliability of information and reporting on transactions with crypto-assets;

requests, free of charge, from persons carrying out activities in the sphere of crypto-assets turnover, documents, information and materials necessary to perform the assigned tasks;

interacts with the special authorized state body on issues of combating the legalization of proceeds from criminal activity, the financing of terrorism and the financing of the proliferation of weapons of mass destruction;

d) in the field of facilitating the initiation and promotion of projects for the implementation of distributed data registry technology and other latest technologies in public administration and various areas of socio-economic development:

interacts with government agencies and other organizations on the implementation of distributed data registry technology;

approves draft regulations and terms of reference providing for the introduction of distributed data registry technology in the activities of state bodies;

assists in raising the level of professional training of employees of state bodies and other organizations on the implementation of distributed data registry technology;

assists in attracting highly qualified specialists from foreign countries in the development and implementation of distributed data registry technology;

based on the study of advanced foreign experience in the field of socio-economic development, provides the development of projects using distributed data registry technology and other latest technologies;

makes proposals for the implementation of projects using distributed data registry technology and other latest technologies in various sectors of the economy;

interacts with public authorities, ministries, departments, organizations, the business community, experts and international organizations on the development and implementation of projects in the field of socio-economic development using distributed data registry technology and other latest technologies.

Chapter 3. Powers and the responsibility of the Agency

10. The Agency has the following powers:

adoption, within its competence, of normative legal acts that are binding on state bodies and organizations, individuals and legal entities, including jointly with other state bodies;

requesting, in accordance with the established procedure, from state bodies and other organizations the materials and information necessary to fulfill the tasks assigned to the Agency;

obtaining from individuals, including officials, written explanations and other information on the facts of violations of the law in the field of circulation of crypto-assets;

filing lawsuits in courts on issues within the competence of the Agency;

engagement of highly qualified employees of state bodies and other organizations, non-governmental non-profit organizations, leading design institutes, scientific and educational institutions, as well as international organizations, foreign companies and specialists, within the framework of the tasks assigned to the Agency;

implementation of activities related to attracting foreign investment in the sphere of crypto-assets turnover;

conducting business correspondence, organizing events, concluding framework agreements with diplomatic missions and consular offices of foreign states in the Republic of Uzbekistan, international organizations;

carrying out publishing activities in accordance with the established procedure, issuing and distributing information materials, periodicals and other printed materials;

alienation or disposal in any other way of property on the balance sheet of the Agency, including real estate, acquired not at the expense of the State budget of the Republic of Uzbekistan, at its own discretion;

sale of crypto-assets received as charitable donations, grants and loans, as well as in the course of the Laboratory's activities, to non-residents of the Republic of Uzbekistan under direct contracts, at the rate set on the day of sale on the national crypto-exchange;

conducting audits of compliance with licensing and permitting requirements and conditions in the field of circulation of crypto-assets, as well as the requirements of legislative acts on combating the legalization of proceeds from crime, the financing of terrorism and the financing of the proliferation of weapons of mass destruction in the sphere of crypto-assets turnover and, based on the results, the application measures in accordance with legislative acts;

drawing up, within its competence, protocols on an administrative offense on the facts of violations of legislation in the sphere of crypto-assets turnover and sending them to the courts;

submission of warnings, conclusions and binding instructions to state bodies and other organizations on revealed facts of violation of the law and on other issues within the competence of the Agency;

holding, in accordance with the established procedure, meetings on issues within the competence of the Agency, with the involvement of representatives of state bodies and other organizations;

representing the interests of the country in international organizations and concluding, in the prescribed manner and in accordance with the norms of international law, cooperation agreements with competent organizations, as well as scientific institutions of other states in the sphere of crypto-assets turnover and the introduction of distributed data registry technology.

The Agency may also have other powers in accordance with legislative acts.

11. The Agency is responsible for the effective performance of the tasks and functions assigned to it.

Chapter 4. Organization of the activity of the Agency

12. The Agency is headed by a director appointed and dismissed by the President of the Republic of Uzbekistan.

The Director of the Agency has two deputies, including one first deputy, who are appointed and dismissed by the Director of the Agency in agreement with the President of the Republic of Uzbekistan.

The director of the Agency, his first deputy and deputy in terms of status, conditions of medical and transport services are equated, respectively, with a minister, first deputy minister and deputy minister.

13. Employees of the Agency are appointed and dismissed by the Director of the Agency.

14. The terms of remuneration of employees of the Agency are determined by the Director of the Agency.

The use in the Agency of the Classifier of the main positions of employees and professions of workers, as well as the tariff coefficients of the Unified tariff scale for wages, is advisory in nature.

15. The sources of funding for the activities of the Agency are:

grants, credits and loans, including in crypto-assets;

deductions from the licensing and permitting procedures carried out by the Agency in the amount determined by legislative acts;

charitable donations, including in crypto-assets, of individuals and legal entities, including foreign individuals and legal entities;

income from the Agency's shares (shares, stakes) in the authorized capital (authorized fund) of legal entities received in the amount established by law;

income received from the implementation of projects on the terms of public-private partnership;

income from the placement of temporarily free funds of the Agency in banks;

other income not prohibited by legislative acts.

16. Director of the Agency:

carries out general management of the Agency's activities and is personally responsible for the implementation of the tasks and functions assigned to the Agency;

approves the staff list and cost estimate of the Agency;

makes changes to the structure and staffing of the Agency, including the introduction of additional staff units;

determines the terms of remuneration of employees of the Agency;

approves the regulations on the structural divisions of the Agency, as well as on the Specialized Laboratory for the Study and Testing of Innovative Technologies in the Sphere of Crypto Assets Turnover;

approves the official duties of the employees of the Agency;

appoints and dismisses employees of the Agency in accordance with the established procedure;

concludes agreements and other cooperation agreements with the competent authorities of foreign states, international organizations, foreign scientific and educational institutions and companies;

within its competence issues orders, decisions and resolutions, gives instructions that are binding on the employees of the Agency.

APPENDIX to the Regulations on the National agency of perspective project of the Republic of Uzbekistan

REGULATIONS

On the Special Regulatory Regime in the sphere of crypto-assets turnover (Special Regulatory Sandboxes Regime)

Chapter 1. General provisions

1. These Regulations define the general provisions on the Special Regulatory Regime in the Sphere of Crypto Assets Turnover (Special Regulatory Sandbox Regime).

2. The Special Regulatory Regime in the Sphere of Crypto-Assets Turnover (the Special Regulatory Sandboxes Regime) means the creation of special organizational and legal conditions for legal entities implementing technologies in the sphere of crypto-assets turnover (hereinafter referred to as pilot projects), granting privileges in legal relations arising in the process of approbation and introduction into practice of pilot projects (hereinafter referred to as the special regime).

3. Within the framework of the special regime, the implementation of projects involving the use of crypto-assets in the territory of the Republic of Uzbekistan as a means of payment or payment acceptance is prohibited.

4. The procedure for granting a special regime is approved by the National agency of perspective projects of the Republic of Uzbekistan (hereinafter referred to as the Agency).

Chapter 2. Main objectives of granting a special regime

5. The main objectives of granting a special regime are:

creation of a platform for approbation and pilot implementation of new technologies in the sphere of crypto-assets turnover;

formation and testing of new regulatory mechanisms, in case of detection of norms that do not meet current requirements;

assistance in the implementation of modern technologies in the sphere of crypto-assets turnover, including pilot projects for the issuance of tokens to attract investment;

expanding the types of products and services in the sphere of crypto-assets turnover, including export-oriented solutions;

ensuring appropriate control in the processes of introducing new technologies in the sphere of crypto-assets turnover;

improvement of the regulatory framework, as well as the development of new methods of regulation based on the experiments carried out under the special regime;

reducing the time and costs of bringing new technologies in the sphere of crypto-assets turnover to the market of the republic;

organization and conduct of research in the sphere of crypto-assets turnover and preparation of analytical materials.

Chapter 3. Rights of the Agency under the special regime

6. Agency:

adopts regulatory legal acts that determine the procedure for granting a special regime, registration of participants in a special regime, the requirements for their activities, measures to support them within the framework of pilot projects being implemented, including after consultations with the relevant authorized bodies, decides to limit the application of the relevant norms of existing by-laws for the period of implementation of pilot projects;

registers participants of the special regime;

exercises systematic control over the timely execution of work carried out by participants of the special regime;

determines the procedure and conditions for processing anonymized personal data by participants of the special regime, as well as requirements for them on the basis of concluded agreements with the relevant authorized state body;

provides organizational, legal and advisory support to participants of the special regime during the implementation of pilot projects.

7. Decisions of the Agency, adopted within its powers, are binding on state bodies, economic management bodies, local government bodies, state enterprises and organizations, business entities, regardless of ownership and departmental subordination, individuals.

Chapter 4. Status of the participants of the special regime

8. Participants of the special regime, after registration in accordance with the established procedure, carry out the implementation of pilot projects without obtaining licenses and permits in the sphere of crypto-assets turnover.

9. The activities of participants of the special regime, as well as their contractual relationships with other entities in the framework of the implementation of pilot projects, are regulated by legal regimes determined by the regulatory legal acts of the Agency.

The maximum amount of contracts (offers, agreements) for the provision of services concluded by participants of the special regime with entities — residents and non-residents of the Republic of Uzbekistan, as well as the maximum number of clients in the framework of the implementation of pilot projects in the special regime are subject to mandatory agreement with the Agency.

10. As part of the implementation of pilot projects in a special regime, there are benefits and preferences provided for by legislative acts.

11. The term for the implementation of pilot projects under the special regime is no more than three years.

After the expiration of the specified period, the Agency makes a decision to introduce amendments and additions to the current legislative acts in order to bring pilot projects beyond the scope of the special regime and disseminate relevant norms in order to regulate relevant relations throughout the territory of the Republic of Uzbekistan (with a positive assessment of the results of the implementation of pilot projects) or termination of the pilot project, indicating the relevant justifications.