The Central Bank of Uzbekistan allows foreign businesses to use crypto trading funds and deposit the same in domestic bank accounts. The authorities have also allowed the transfer of these funds outside the country. However, other operations will be restricted in the country.
UZBEKISTAN CHANGES RULES FOR CRYPTO EXCHANGE.
The Central Bank of the Republic of Uzbekistan has recently revised its regulations regarding foreign exchange transactions related to non-resident legal entities, including those dealing with cryptocurrencies. The updated rules now permit such entities to open accounts at local banks. However, the scope of activities for utilising funds derived from cryptocurrency trading remains limited.
The legal information portal Norma.uz, as cited by crypto news outlet Forklog, reported that under the updated guidelines, funds transferred from the foreign accounts of companies involved in cryptocurrency exchanges or revenue earned from the sale of digital assets could be placed in foreign currency accounts in Uzbekistan.
As per the report, these funds can be used to purchase digital assets again on an exchange or transferred to accounts of foreign-registered entities in the countries where the funds originated. Nevertheless, the updated guidelines prohibit the use of these funds for any other purposes within Uzbekistan.
UZBESKITAN’S TAKE ON CRYPTO
Uzbekistan has been taking steps towards regulating its cryptocurrency market in recent years. The country’s government views blockchain technology as a critical driver of economic growth and has been seeking to attract foreign investment into the country’s crypto sector.
In 2018, the government of Uzbekistan introduced new legislation to create a legal framework for the cryptocurrency market. The law legalised cryptocurrency trading and allowed for the licensing of crypto exchanges. The following year, the government also introduced tax exemptions for cryptocurrency transactions.
More recently, in late 2022, the National Agency of Perspective Projects (NAPP) under President Shavkat Mirziyoyev approved regulations governing the issuance and trading of digital assets.
Despite these positive steps, the use of cryptocurrencies remains controversial in Uzbekistan. In 2019, the central bank of Uzbekistan warned citizens about the risks of investing in cryptocurrencies, citing concerns over money laundering and terrorist financing. Additionally, in early 2021, the country’s government imposed restrictions on crypto mining, citing concerns over energy consumption.
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