Uzbekistan restricted access to unlicensed cryptocurrency exchanges and exchange services. ForkLog information was confirmed by the National Agency for Advanced Projects (NAPP), which acts as the industry regulator in the country.
The NAPP stressed that exchanges and other platforms providing services in the field of crypto assets turnover must obtain a service provider license to operate in Uzbekistan.
Such platforms also request personal data of residents of the country without taking into account the requirement to install servers on the territory of Uzbekistan, the regulator noted:
“In addition, they do not bear any legal responsibility for carrying out transactions with crypto assets and cannot guarantee the legitimacy of transactions, as well as the proper storage and preservation of the confidentiality of the personal data of citizens.”
noted the regulator.
According to the April resolution, from January 1, 2023, citizens and legal entities of Uzbekistan will be able to carry out transactions of purchase and sale or exchange of cryptocurrencies exclusively through service providers.
“From the moment [the decree was published], we did not block foreign platforms, as we understand that our citizens have funds on these platforms. But this measure did not mean that citizens can safely trade on foreign platforms until January 1, 2023. There has already been a ban on this since 2019.”
the NAPP specified.
At the moment, only one exchange, UzNEX, has received a license to operate in Uzbekistan.
“We are always ready to consider applications for obtaining a license from all major crypto exchanges if they are interested in starting their activities on the territory of Uzbekistan following the requirements of the law”
the NAPP said.
Recall that in 2021, the Uzbek authorities urged residents of the country not to use “unofficial” platforms for trading and exchanging cryptocurrencies.
In June 2022, the NAPP developed a registration policy for miners.