Uzbekistan Presidential Order Mandates Arbitration Center to Resolve Crypto Disputes
Uzbekistan Has Set Up Arbitration Center for Crypto
This move follows a similar one by Russia. Uzbekistan will now implement arbitration mechanisms for disputes in crypto. This was done via a presidential decree, which called for the establishment of the arbitration body to handle cases of people from different jurisdictions.
Foreign and National Law to be used
The arbitration center will be placed under the Chamber of Commerce and industry. According to the decree, the platform will be a place to settle disputes over investment, intellectual property, and crypto technology.
This center will adhere to international arbitration standards and will deal with disputes from local and foreign entities. It will use both foreign and domestic law where the need arises. However, this will only happen if both sides agree to it. Both local and foreign experts can sit in the arbitration center.
It will also be a center for consultations for businesses. This center will offer its advice to both local and foreign businesses that want to invest in Uzbekistan. The center will focus on avoiding disputes, which include cases where the state might be forced to intervene.
The rulings made by the center can be enforced inside Uzbekistan. The rulings will be implemented in line with local laws and international treaties to which the nation has signed up to. Various mechanisms to resolve issues will be used such as mediation and others.
What the Media Reported
According to local media in the nation, there will be a supervisory board in place. It will consist of major arbitration experts. They will ensure that global best practices are used at the center. The president of the nations said the chamber of commerce will draft the law for the center. This is expected to be done in a month’s time. It will help create a legal basis on which the center can operate.
The government of the nation has been quite friendly to crypto. It aims to regulate the sector in a positive manner. In July, a presidential decree created the rules for the legalization of crypto transactions, mining, and the blockchain. In September, the president authorized the introduction of a licensing mechanism for digital exchanges. Two state companies have also been told to allocate land for the creation of large crypto mining facilities.
The Second to do so
The nation is now the second to have this arbitration center after Russia launched its own a while ago. This will go a long way in dealing with issues arising from the crypto space, where it has caught on quite well in the nation. Just this month, a major organization in the crypto world announced it would set up an arbitration center.
This could help settle issues between players in the crypto sphere. It will include disputes between investors and startups that raise funds via ICOs. It will also handle issues that arise from parties in a smart contract. In essence, the aim is to reduce conflict and ensure that the industry succeeds. It will also encourage investors to take part in the crypto economy, knowing they have a legal body backing them.