Changes to the regulations regulating crypto exchange activity in Uzbekistan now enable residents to trade cryptocurrencies on regulated platforms. Previously, Uzbeks could only sell their digital assets. The new laws also govern the issuing and listing of tokens.
Uzbeks will be permitted to trade digital currencies on the country’s authorized cryptocurrency exchanges. This is now allowed since the National Agency for Project Management (NAPM), led by President Shavkat Mirziyoyev, recently revised the laws governing local cryptocurrency trading.
According to the new legislation, citizens of Uzbekistan can purchase, sell, and exchange crypto assets for their national currency within the country, according to Forklog, citing an order issued by the agency’s head. Non-residents are also permitted to swap cryptocurrency for foreign cash.
Uzbekistan approved cryptocurrency trading in 2018, however the government restricted local citizens from acquiring cryptocurrencies in late 2019. They were only able to sell. The regulatory authority noted that the relaxation of the limits is due to citizens’ “more rational and balanced” approach to crypto investment.
In September of this year, the NAPM issued a warning against trading on unregistered platforms, reminding residents that crypto exchange operations are subject to licensing under the presidential decree “On measures to develop the digital economy in the Republic of Uzbekistan” and the law “On licensing and notification procedures.”
The revisions also address the creation and trade of digital tokens. The launching of insecure tokens on local exchanges is prohibited by the National Agency for Project Management. Tokens are defined under the legislation as a unit of account secured by physical or other property and used to attract investment, according to NAPM.
Tashkent authorities have maintained a fairly supportive approach toward the crypto industry. They announced ambitions to construct a national mining pool, a blockchain valley, crypto tax exemptions, and a cryptocurrency exchange in January 2020. Later that month, the South Korean company Kobea Group established Uznex, a digital asset trading platform.
The usage of cryptocurrencies as a form of payment for goods and services, however, remains illegal in the Central Asian country. The Central Bank of Uzbekistan ruled against the possibility of bitcoin and other cryptocurrencies being recognized as legal money in the nation in September. A high-ranking official was cited as saying that this is unlikely to change in the future.