Uzbekistan grants approval for Mastercard-backed crypto cards by Ravnaq Bank and Kapital BankUzbekistan’s National Agency of Perspective Projects (NAPP) has authorized two private banks, Ravnaq Bank and Kapital Bank, to issue Mastercard-backed crypto cards. This initiative is part of a pilot project aimed at launching virtual cards linked to cryptocurrency wallets, allowing instant conversion to fiat money.
Ravnaq Bank and Kapital Bank are now registered participants in the Special Regulatory Sandbox Regime, a framework that empowers specific entities in the Uzbekistan crypto space to offer specialized services. The banks will develop and implement a virtual bank card product named “CRYPTO CARD – UzNEX,” enabling customers to automatically add funds to their accounts by quickly selling off crypto assets on a partner exchange platform.
The crypto card, scheduled for a full project launch by late December 2023, will be tested for compatibility with various financial systems, including the Mastercard payment platform.
The participant of the special regime will test the solution for integrating the automated banking system, the information system of the crypto-exchange, the processing center of the bank, and the MasterCard international payment system.
Uzbekistan’s National Agency of Perspective Projects
Ravnaq Bank aims to commence its test launch by the end of October 2023, while Kapital Bank began its testing phase at the end of June 2023.
Uzbekistan’s evolving approach to crypto regulation and licensing
Uzbekistan’s government has been actively working to introduce clear and effective regulations in its growing crypto space. In May 2022, the Central Asian nation established the NAPP to serve as the principal regulatory body for all crypto-related activities, including mining, trading, and blockchain applications.
The NAPP’s efforts have led to introducing a new cryptocurrency framework in 2023, under which only licensed virtual asset service providers are permitted to operate. The first licenses were granted to local crypto firms in November 2022, and since then, licenses have been issued to seven other crypto businesses. The NAPP also introduced a new licensing regime for crypto miners, allowing them to operate legally in free economic zones.
In August 2022, Uzbekistan banned the operations of certain exchanges, including Binance and FTX, for non-compliance with license registration standards. The country’s regulatory approach to crypto was initiated by a presidential decree in 2022, providing comprehensive legal details related to cryptocurrency mining operations in Uzbekistan.
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