Uzbekistan authorities have restricted access to crypto trading platforms that are not located in the country. By a Presidential Decree, citizens and businesses in the country are required to only access digital asset trading platforms licensed by the Central Asian Government.
Uzbekistan Makes Measures to Stop Crypto Trading and To Protect Foreign Platforms
Uzbekistan’s National Agency of Perspective Projects (NAPP) has registered a spike in activities of online platforms providing crypto-related services to Uzbekistanis without the necessary license. These platforms facilitate the trading of cryptocurrency and ask for personal information, without requiring that servers be installed within the country.
In a recent statement, the agency pointed out that such platforms “do not bear any legal responsibility for carrying out operations with crypto assets, cannot guarantee the legitimacy of transactions, as well as the proper storage and confidentiality of the personal data of citizens of the Republic of Uzbekistan.” In light of these findings, the regulator has restricted access to their domains.
It is clear that Uzbekistan continues to work hard on improving the institutional and regulatory framework of the crypto sector. The types of activities that can be carried out in relation to digital assets such as mining them and providing services to facilitate their circulation was defined by the 2018 decree of President Shavkat Miziyoyev.
Some providers that are subject to licensing include crypto exchanges and depositories as well as mining pools. Other crypto companies offer services such as storage, management, purchase, disposal, issue, placement and management of crypto assets.
Uzbekistanis, businesses and residents based in the country can acquire, trade, or exchange crypto currencies only on their own platforms. This is effective as of January 1, 2023. NAPP now emphasizes this doesn’t mean local firms and citizens are granted the right to conduct such transactions on foreign platforms before that date.
Uzbekistan licensed one cryptocurrency exchange so far. Uznex, which is operated by South Korean firm Kobea Group was established in January 2020. The National Agency of Perspective Projects warned Uzbekistani cryptocurrency traders last fall to stay away from unlicensed exchanges. This leaves them with only one legal option.
All residents have been reminded by the agency that crypto transactions can be performed on registered exchanges using the nation’s currency, the som. They also have the ability to sell crypto assets for foreign currency to non-residents. The NAPP urges Uzbekistan’s citizens not to use the services of online platforms that have not obtained a license to operate in the republic and to report them to law enforcement.
What do you think Uzbekistan might do to allow more cryptocurrency exchanges? Please leave your comments below.
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