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Uzbekistan issues licenses to 2 crypto exchange service providers

Uzbekistan

TL;DR Breakdown

  • Uzbekistan licenses local crypto service providers amid plans to go mainstream in 2023
  • Uzbekistan has a well-developed crypto asset regulatory system in the market
  • El Salvador establishes the National Bitcoin Office (ONBTC)

Some governments are unwilling to abandon the crypto sector despite the ongoing FTX contagion. The governing body of the crypto sector in Uzbekistan has awarded exchange licenses to two companies. Reports indicate that Uzbekistan is planning to introduce a new cryptosystem in 2023.

This is not the first time that Uzbekistan has placed significant emphasis on ‘improbable’ trading routes. Uzbekistan is the most populated nation in Central Asia, and its history, culture, and diversity are rich. It has been a part of multiple empires and was formerly the Silk Road’s primary hub, making it an ideal site for history buffs. The country is landlocked, and its neighbors include Afghanistan, Kazakhstan, Turkmenistan, Tajikistan, and Kyrgyzstan.

Uzbekistan licenses crypto exchanges for the first time

The National Agency of Perspective Projects (NAPP) of Uzbekistan has issued licenses to two firms offering crypto exchange services. The government has registered Crypto Trade NET and Crypto Market as “service providers in the field of crypto asset turnover.”

According to the NAPP’s electronic licensing registry, Crypto Trade NET and Crypto Market are both headquartered in Tashkent. The data also identifies Kamolitdin Nuritdinov as the only creator and shareholder of the Crypto Market. Additionally, Behzod Achilov is the sole founder and owner of Crypto Trade NET.

The NAPP, which is subject to the Tashkent presidency, is the primary crypto sector regulator in the Central Asian republic. The agency added that the Republic of Uzbekistan is one of the few nations with a well-developed framework for regulating the circulation of crypto assets.

According to the announcement, the NAPP has awarded licenses to two firms in accordance with the April 2022 presidential decree that outlines conditions for the circulation of crypto assets in Uzbekistan. However, one of the platforms appears to have a functional website at this time.

President Shavkat Mirziyoyev expanded the regulatory framework earlier this year by signing a decree that gave legal definitions for crypto assets, trading, and mining. In addition, the government imposed additional registration requirements for miners and implemented monthly taxes for crypto enterprises.

While there is currently one cryptocurrency exchange in Uzbekistan, the government-run Uznex, the two permitted enterprises will operate as digital money exchangers or “crypto shops” as specified by the legislation.

It should be emphasized that Crypto Trade NET LLC and Crypto Market LLC became the first crypto shops in the CIS and Central Asia [..] Crypto shops are designed to provide easier access for citizens to buy or sell crypto assets.

The National Agency of Perspective Projects (NAPP)

The National Agency of Perspective Projects further warned Uzbek nationals to exercise the utmost vigilance and avoid using the services of unlicensed online trading platforms.

The announcement comes shortly after the government of Uzbekistan suspended a number of prominent global crypto exchanges for lacking the required license to provide crypto trading services.

The block hit crypto companies such as Binance and Huobi. However, customers were apparently able to access their websites through VPN. After announcing the measures in August 2022, the NAPP subsequently removed the announcement.

Uzbekistan is aggressively planning to implement a new crypto regulatory framework within the next few months. On January 1, 2023, the government of Uzbekistan will only permit licensed cryptocurrency enterprises to provide crypto services to Uzbek nationals.

El Salvador opens its first BTC office

Uzbekistan is not the only nation undertaking “first-time crypto” initiatives today. El Salvador has established the National Bitcoin Office (ONBTC), which will oversee all Bitcoin-related initiatives.

The new agency will serve as a functionally and technically autonomous administrative division inside the president’s office. The entity was founded by El Salvadoran President Nayib Bukele and the Minister of Tourism’s Decree No. 49, which was published in the Official Gazette.

The entity’s duties include conceptualizing and disseminating knowledge about Bitcoin, blockchain, and cryptocurrencies in El Salvador to “the media and any interested person.”

In addition, the ONBTC, or National Bitcoin Office, will assist global Bitcoin, blockchain, and crypto entrepreneurs and investors that wish to conduct business in El Salvador or visit the country, as well as actively promote El Salvador’s participation in international forums.

Additionally, ONBTC would be responsible for the management and analysis of all persons requesting meetings with the president in order to introduce Bitcoin and blockchain technology to El Salvador.

The Bitcoin Office is also responsible for coordinating efforts related to the formulation of appropriate Bitcoin and blockchain policies as established by the presidency.

The director of the Bitcoin Office will be appointed by the president of El Salvador, who will also have the right to appoint staff members as needed to carry out the institution’s functions.

El Salvador was the first country to recognize Bitcoin as a legal tender in 2021, becoming the first to do so. President Bukele of El Salvador declared a week ago that the Central American country would begin purchasing one Bitcoin (BTC) per day.

Florence Muchai

Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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