Uzbekistan Grants Cryptos’ Operating License to Local Exchange Providers
Uzbekistan portrayed a commitment to ease digital currency transactions for its nationals through licensing two local exchange providers.
Uzbekistan’s desire to ease the adoption of compliance-focused crypto actors is an illustrated priority by its market watchdog. The National Agency for Perspective Projects (NAPP) granted trading licenses to two local service local firms – Crypto Market LLC and Crypto Trade Net LLC. The approval was announced officially by NAPP on November 17, with the Uzbek regulator expressing the need for compliance-oriented crypto service provision.
Active Government Input
NAPP is the primary regulator for Central Asian crypto-related activities. While conveying the approval news to the two Tashkent-based providers, the agency president acknowledged the Uzbekistan Republic’s leading role in rolling out a well-formed framework regarding crypto circulation.
The agency acknowledged presidential decrees and framework resolutions as a critical milestone towards facilitating the digital economy. Particularly, the agency referred to the decree signed by President Shavkat Mirziyoyev in early 2022 as expanding the oversight framework of digital assets, cryptos exchanges and mining. Besides introducing new registration requirements for miners, the decree stipulated the monthly fees that crypto actors should pay.
Defined Crypto Exchange Space
Uzbekistan has defined cryptocurrency exchange space with strict observance to shield the Central Asian country from a contagious meltdown as witnessed following Three Arrows Capital (3AC) and FTX Group collapse. The prohibition of other exchange platforms in the country left the government-owned Uznex as the sole provider of cryptocurrency exchange.
The NAPP emphasized that the two local platforms were licensed to work as crypto shops to ease access to crypto assets in both inbound and outbound transactions. The NAPP representative challenged Uzbekistan citizens to exercise vigilance and avoid deceptive online trading platforms. The instructive remark targeted Uzbek citizens against becoming trapped by the FTX-like scheme whose collapse earlier this month, billions of invested dollars.
Restricted Access to Crypto Exchange
The licensing of two crypto shops is timely, given that NAPP had restricted access to platforms of foreign-owned crypto traders in August. The protectionist approach knocked off Binance – the largest exchange globally.
Further, NAPP warned the citizens against relying on trading platforms operating without a regulatory license. It is conceivable that the remark referred to the NAPP decision to unblock Bestchange-ru for its popularity in exchange aggregation across the former-soviet space.
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