Uzbekistan authorities restrict citizens from selling crypto and ban buying them

By Dorothy 12/25/19 9:26 AM

Uzbekistan has legalized crypto trading and introduced licensing to exchanges with the presidential decree last year. However, it has now become a crime to sell cryptocurrencies in the country.

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The country of Uzbekistan placed a ban on buying/selling or holding any cryptocurrency to citizens, including purchases from licensed cryptocurrency exchanges, reported on December 24, 2019. Residents are effectively banned by authorities in Uzbekistan from buying cryptocurrencies on licensed digital asset exchanges in the country.

According to the report, citizens of Uzbekistan are not allowed to buy any cryptocurrency or keep it in the country and cryptocurrencies are completely banned, even licensed exchanges will cease service after ban notices.

Additionally, if you have invested in cryptocurrencies, you can legally sell them right now through Forklog and Sputnik, two registered cryptocurrency exchange platforms.

Uzbekistan’s revised cryptocurrency regulations

The Central Asian Republic reached the headlines of cryptocurrency communication last year when the country legalized cryptocurrency trading and introduced licensing for exchanges with a presidential decree issued in fall 2018.

President Shavkat Mirziyoyev signed an earlier decree in the summer of the same year, preparing legal grounds for other operations related to the circulation of digital currencies. For a time, this country looked like a promising destination for cryptocurrency trading.

However, the National Project Administration, directly under the president, recently adopted amendments that have been made to the regulatory regime to restrict options for local private individuals to use cryptocurrencies significantly. On December 6, Uzbekistan citizens will only be allowed to sell cryptocurrency assets on registered exchanges, Sputink and Forklog reported, according to a new order issued by the agency.

While it’s still unclear whether regulators will determine if someone with digital money is involved in the transfer, the making of any transactions with coins acquired through anonymous transactions is also prohibited. Users with verified identities, 18 years of age or older, and names not on the list of individuals suspected of money laundering and terrorist financing are those that exchanges should only serve.

In June of this year, these new requests were inspired by global standards for cryptocurrency assets adopted by the Financial Action Task Force (FATF), according to media reports. However, the Uzbek government has not completely abandoned its original intention to fit cryptocurrency businesses in the country.

Despite the rigor of newly adopted rules, the overall legal framework that will attract new foreign investment is the hope of the Project Management Agency under President Mirziyoyev. The executive authority in Tashkent also hopes that cryptocurrency companies will generate more revenue for Uzbekistan commercial banks that provide services to this sector.

When the cryptocurrency industry was granted regulatory certification last year, Uzbekistan sought to acquire know-how from others with more experience in the field. The government said it had signed an agreement with the Korea Blockchain Business Association, which must help in implementing the Uzbekistan 4.0 Revolution project to develop the country’s blockchain space.

The agency responsible for calling for change

National Agency for Project Management recently adopted amendments to the regulatory regime to substantially restrict options for local private individuals to use cryptocurrencies.

The new cryptocurrency dawn in Uzbekistan will see that Uzbekistani’s can only sell crypto assets on registered exchanges and decentralized use of cryptocurrencies as a means of payment is currently banned in this country.

Uzbekistan legalized cryptocurrency exchanges and trading

Legalizing cryptocurrency trading in Uzbekistan is a new presidential decree, introducing licensing for cryptocurrency exchanges and a range of requirements they will be obligated to meet. To operate in the country, foreign exchanges will have to set up local subsidiaries and comply with the laws related to the country.

Shavkat Mirziyoyev, the President of Uzbekistan, signed a decree to legalize cryptocurrency exchanges, local media and the region. The document introduces a licensing regime for trading platforms as well as some requirements they need to meet in order to be allowed to operate in this Central Asian country. It came after an earlier decree issued in July prepared legal grounds to regulate crypto-related activities.