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 i 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.
Source: https://www.cryptopolitan.com/uzbekistan-licenses-2-crypto-exchanges/