Development Within the Crypto Trading Market In Azerbaijan
Despite the large interest in the crypto market, the government’s position regarding cryptocurrencies is still pretty traditional. Obviously, at the state level, Azerbaijan doesn’t recognize cryptocurrencies as a way of payment, but it plans to create a legislative framework for having blockchain technology in the financial and checking sector and in public services. The first point is to create a steady technological and legislative infrastructure.
Cryptocurrencies traders assume that it’s necessary to develop a model of interaction in digital money together with the old model of the economy, working on the cornerstone of a traditional financial system based on fiat money
Since the volume of cryptocurrency trade is growing in Azerbaijan, the state likes to increase budget revenue by taxing transactions with digital currencies. Income from crypto-fiat transactions is to be taxed in Azerbaijan. If you have some crypto revenue, you should register this as income tax and as profit tax if you’re a legal entity. Any time someone buys your cryptocurrency and then advertises it after the price tag goes up, this total will be recorded while income and therefore needs to be reported on the levy return.
Despite the fact that the central bank of Azerbaijan is actively preparing for the use of smart contracts, which automate virtually all processes, not allowing for making any shifts in them, the bank doesn’t plan to issue its own cryptocurrency. The biggest reason for this is the fact that trading with cryptocurrencies can carry pitfalls.
Production of a blockchain
The Republic of Azerbaijan blueprints to complete the expansion of a blockchain-based digital camera identification system additionally, the system should be released soon. Regarding blockchain technology, Azerbaijan attempts to attract innovative technologies that connect with all global principles. A modern Data Core was created, which is together a scientific core, an industrial business, and a major business, whose goal is to promote industrial recreation, conduct research, export projects, and appeal to foreign investment in neuro-scientific information technology.