Uzbekistan’s Crypto Regulations Pave the Way for Economic Advancement
500,000 Uzbek citizens own cryptocurrencies.
Transaction volumes range from $25 million to $180 million weekly.
More than $494,000 of fees and state fees have been collected since October 2022.
In 2022, Uzbekistan’s government ramped up its efforts to grow the country’s cryptocurrency market. They passed several laws, including those that outline how digital assets should be issued and circulated. These initiatives are now beginning to show results.
Following the passage of several crypto-currency laws in 2022, the country’s National Advanced Projects Agency (NAPP) has taken the lead in further defining and regulating the growing industry.
The First Deputy Director of NAPP, Vyacheslav Pak, recently announced the agency’s latest legislative initiatives, which include matters related to Bitcoin mining and DeFi among other things.
Crafting the Future of Crypto in Uzbekistan
NAPP works closely with several other Uzbek governmental bodies, including the Central Bank and law enforcement agencies. Their collaborative efforts target potential illegal activities in the crypto space, from dubious banking transactions to fraudulent service providers.
Cryptocurrencies in many countries are in a gray area. This allows them to be used not only within the framework of existing legislation.
Regulation is an enabler, not a hindrance. Our legislative initiatives aim to create a robust ecosystem that balances innovation with securityVyacheslav Pak, First Deputy Director of NAPP
The Crypto Regulatory Sandbox
NAPP administers a regulatory sandbox hosting three registered crypto projects. This sandbox examines technology and shapes legislation, with a three-year pilot duratio
As of May 2023, approximately half a million Uzbek citizens own cryptocurrencies, positioning the country 53rd globally in terms of crypto adoption.
Local users play a substantial role in activities across diverse trading platforms, contributing to weekly transaction volumes ranging from $25 million to $180 million.
Marching into the Crypto Age
Uzbekistan aims to become the dominant force in the Asian cryptocurrency market. Targeted laws and an active regulatory body like NASP indispensably distinguish the country in the region.
For instance, Kapital Bank and Ravnaq Bank, two private banks in Uzbekistan, recently gained approval from the National Agency for Perspective Projects (NAPP) to take part in a regulatory sandbox focused on crypto.
These banks plan to issue Mastercard-backed plastic crypto cards, indicating a real-world application of the country’s crypto-friendly regulations.
This move highlights how Uzbekistan’s proactive regulatory approach is already facilitating tangible innovations in the crypto sector.
“From the development of our CBDC to the liberalization of cryptomining, Uzbekistan is aware of the prospects and potential of this new financial landscape,” concludes Vyacheslav Pak.
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