Uzbekistan’s administration, which has already taken substantial strides towards a moderate stance on cryptocurrencies, declared on Wednesday that access to several major international cryptocurrency exchanges had been prohibited due to claims of unauthorized activities.
NAPP announced a ban on access to crypto services from unlicensed exchanges
The National Agency of Perspective Projects (NAPP) announced in a statement dated August 10 that access to “different electronic platforms” that offer services for the exchange and trading of crypto-assets without acquiring the necessary license in breach of the law was banned.
The tone of the message, however, indicated that there shouldn’t be any further barriers to foreign exchanges offering their services once they have obtained a license and fulfilled the legal requirements to set up servers on Republic of Uzbekistan soil.
For now, they cannot ensure the legitimacy of payments or the appropriate retention and security of personal information of the Republic of Uzbekistan’s citizens because they have no legal obligation for transactions involving crypto-assets.
The current legislation being discussed is July 3, 2018, presidential decree titled, “On measures to develop the digital economy and the sphere of crypto-assets turnover in the Republic of Uzbekistan.”
The president signed a decree to govern the crypto sector in April 2022
President Shavkat Mirziyoyev signed a directive on managing the sector at the end of April 2022, assigning the newly constituted agency the task of establishing a “unique crypto regulatory regime” in Uzbekistan. As a result, the NAPP now holds the title of the primary cryptocurrency regulator in the nation.
The NAPP announced in June that it would only permit businesses to mine Bitcoin (BTC) and other coins in the nation if they used solar power. A certificate and registration in the national database of cryptocurrency mining enterprises were also requirements of the presidential order for any mining operator.
The international exchanges that Uzbek cryptocurrency investors have been using include FTX, Binance, and Huobi.
The country also introduced new tax rates for cryptocurrency mining operators reflecting Uzbekistan’s frustration with the non-transparent and undertaxed usage of the national energy grid for domestic and international operators.