Uzbekistan Allows Cryptocurrency Trade on Local Exchanges

Residents can now trade coins on licensed platforms thanks to changes to the rules that govern crypto exchanges in Uzbekistan. Previously, Uzbekistanis were able to only sell their digital assets. New provisions regulate both the issuance and listing of tokens.

Uzbekistan relaxes restrictions on domestic crypto trading

Uzbekistanis can now trade digital currencies on their licensed crypto exchanges. This is possible because the National Agency for Project Management, President Shavkat Mirziyoyev, recently modified the rules for local cryptocurrency trading.

Forklog reported that Uzbekistan residents can now buy, sell and exchange crypto assets for their national currency. This is according to the decree of the agency’s director. It is also permissible to exchange cryptocurrency for foreign fiat.

Crypto trading was legalized in Uzbekistan in 2018. However, the government prohibited local residents from buying cryptocurrencies in late 2019. They could only sell. According to the regulatory body, the lifting of restrictions was due to citizens’ changing how they approach crypto investing.

The NAPM warned residents against trading on unregistered platforms in September 2018. It reminded them that crypto exchange operations are subject licensing under the Presidential Decree “On measures to develop Uzbekistan’s digital economy” and “On licensing and notification procedures”.

These amendments also concern the trading and issuance of digital tokens. The National Agency for Project Management forbids the listing of unsecure tokens on local exchanges. According to NAPM, tokens are a unit of account that is secured by tangible or another property and is used to attract investments.

Tashkent authorities have shown a positive attitude towards the crypto space. They announced plans in January 2020 to create a national mining pool and a blockchain valley, exempt crypto taxes, and establish an exchange. Uznex was launched by South Korean entity Kobea Group later that month. It is a digital asset trading platform.

The use of cryptocurrency as a payment method for goods or services is still forbidden in this Central Asian country. The Central Bank of Uzbekistan rejected the possibility that bitcoin or the rest could become legal tender in September. According to a senior official, this is unlikely to change.