Residents in Uzbekistan can now trade coins on regulated platforms thanks to revisions to the legislation governing crypto exchange activities. Previously, Uzbeks could only sell their digital assets. The new laws also govern the issuing and listing of tokens.
Uzbekistan Lifts Restrictions on Crypto Trading Within the Country
Uzbek citizens will be permitted to trade digital currencies on approved crypto exchanges in the country. The National Agency for Project Management (NAPM), led by President Shavkat Mirziyoyev, recently modified the rules governing local cryptocurrency trading, making this possible.
Residents of Uzbekistan can now purchase, trade, and exchange crypto assets for their national currency, according to new legislation, according to Forklog, citing an order issued by the agency's head. Cryptocurrencies can also be exchanged for foreign currency by non-residents.
Crypto trading was authorized in Uzbekistan in 2018, but the government restricted local residents from purchasing cryptocurrency in late 2019. They had no choice but to sell. The regulatory authority claimed that the limits were lifted because citizens' attitudes about crypto investing had changed, becoming "more sensible and balanced."
The NAPM issued a warning against trading on unregistered platforms in September, reminding residents that crypto exchange operations must be licensed under the presidential decree "On measures to develop the digital economy in the Republic of Uzbekistan" and the law "On licensing and notification procedures."
In addition, the modifications address the issuance and trade of digital tokens. The National Agency for Project Management forbids unsecured tokens from being listed on local exchanges. According to NAPM, tokens are defined as a unit of account secured by tangible or other property and used to attract investment.
Tashkent's authorities have maintained a largely supportive attitude toward cryptocurrency. They announced plans to develop a national mining pool, a blockchain valley, cryptocurrency tax exemptions, and a cryptocurrency exchange in January 2020. Later the same month, Uznex, a digital asset trading platform run by the South Korean company Kobea Group, was launched.
However, the Central Asian country still prohibits the usage of cryptocurrencies as a means of payment for products and services. The Central Bank of Uzbekistan ruled against the possibility of bitcoin and other cryptocurrencies being recognized as legal money in the country in September. A high-ranking official was quoted as saying that this is unlikely to change in the future.