WIKIFX REPORT: UZBEKISTAN RESTRICTS ACCESS TO UNLICENSED FOREIGN CRYPTO EXCHANGES

Under the regulations, cryptocurrency exchanges must be licensed in Uzbekistan. From January 1, 2023, Uzbek citizens and companies are legally permitted to conduct transactions only with licensed cryptocurrency exchanges, NAPP said. The Uzbekistan government announced restrictions on access to several big global cryptocurrency exchanges as they are allegedly carrying out unlicensed activity on 10th August.

A statement by the countrys National Agency of Perspective Projects (NAPP) said, “During the monitoring of information resources on the Internet, it was identified that to date there is an intensification of activities of various electronic platforms that provide services to citizens of the Republic of Uzbekistan on trade and (or) exchange of crypto-assets without obtaining the required license for the activities of service providers on the territory of the country.”

Such platforms provide services related to buying and selling and (or) exchange of cryptocurrency assets and ask for personal data but do not consider what is required to deploy servers in the country, based on the stipulations of the law.

The announcement highlights that the government of Uzbekistan has made consistent efforts to improve the regulatory and institutional framework in the crypto space. A decree signed by President Shavkat Mirziyoyev in 2018 defined the types of business activities pertaining to digital assets like the mining of cryptocurrencies and the provision of services related to their circulation. Hence, the statement announced restrictions on access to electronic platforms (crypto-exchanges and electronic exchange platforms) that do not have a license for service providers following the requirements of the countrys legislation.

Citizens are urged to be cautious and not use such platforms services. The statement asked people to inform the authorities if they have any information related to the activities of individuals operating based on suspicious schemes using cryptocurrency assets in the country.