Despite the excessive interest in the crypto market, the government’s position regarding cryptocurrencies is still pretty traditional. Obviously, at the condition level, Azerbaijan doesn’t recognize cryptocurrencies as a method of payment, but it plans to create a legislative framework for the utilization of blockchain technology inside financial and checking sector and in public areas services. The first stage is to create a steady technological and intention infrastructure.
Cryptocurrencies traders feel that it’s necessary to develop a model of interaction from 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 for Azerbaijan, the state really wants to increase budget revenue by taxing business with digital stock markets. Income from crypto-fiat transactions is to be taxed in Azerbaijan. If you have some crypto revenue, you should register this as income tax or maybe as profit tax if you’re a fabulous legal entity. In the event someone buys a cryptocurrency and then advertises it after the charge goes up, this amount of money will be recorded seeing that income and therefore ought to be reported on the tax return.
Despite the fact that the central bank of Azerbaijan is actively re-entering the use of smart legal agreements, which automate every processes, not allowing for making any changes in them, the bank doesn’t plan to concern its own cryptocurrency. The biggest reason for this is that trading with cryptocurrencies can carry dangers.
Development of a blockchain
The Republic of Azerbaijan options to complete the development of a blockchain-based handheld identification system and the system should be launched soon. Regarding blockchain technology, Azerbaijan seeks to attract new technologies that meet all global criteria. A modern Data Centre was created, which is each of those a scientific centre, an industrial business venture, and a major business, whose goal should be to promote industrial activity, conduct research, foreign trade projects, and entice foreign investment in neuro-scientific information technology.