Foreign crypto exchanges that perform unregistered trading in Uzbekistan will be blocked by the country’s regulator, which in turn stated that all of the industry’s participants (crypto exchanges) must obey local laws.
Uzbekistan’s government, which has already taken substantial strides toward a moderate stance on cryptocurrencies, declared on Wednesday that access to several major international crypto exchanges has been prohibited due to claims of unauthorized activities.
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 trade and exchange of crypto-assets without acquiring a license in violation of the law was banned.
Foreign Crypto Exchanges Can Register Their Business In Uzbekistan
The tone of the statement, however, suggested 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 Uzbek soil.
“They have no legal responsibility for transactions with crypto-assets, and cannot guarantee the legitimacy of transactions, as well as the proper storage and protection of confidentiality of personal data of citizens of the Republic of Uzbekistan.”
The presidential order dated July 3, 2018, titled “On Measures to Develop the Digital Economy and the Sector of Crypto-Assets Turnover in the Republic of Uzbekistan,” is the current law that is being discussed.
End Of Unregistered Trading
President Shavkat Mirziyoyev issued a decree on regulating the business at the end of April 2022, assigning the newly constituted agency the task of establishing a “unique crypto regulation regime” in Uzbekistan. As a result, the NAPP now holds the title of the primary crypto regulator in the nation.
The NAPP announced in June that it would only permit businesses to mine Bitcoin (BTC) or other cryptocurrencies in the nation if they used solar power. A certificate and registration in the national registry of cryptocurrency mining enterprises were also stated as requirements of the presidential order for any mining operation that wants to do business in the country.
The aforementioned rule will help ease the Uzbek energy grid and will help foster sustainable Bitcoin mining in the country by creating green mining initiatives. The rule deserves praise.
The international exchanges that were used by Uzbek cryptocurrency investors included Binance, FTX, and Huobi.
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