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Uzbekistan mulls lifting ban on cryptocurrency

TL;DR Breakdown

  • NAFT may be ready to legalize crypto trading
  • How crypto regulation has been fluctuating in Uzbekistan

Authorities in former Soviet republic Uzbekistan are beginning to discuss lifting the ban placed on trading and using cryptocurrencies in the country.

This is according to the National Project Management Agency of the Presidency of the Republic of Uzbekistan, NAFT.

According to local reports, they published plans to remove certain crypto restrictions in the country and proposed that local residents buy digital assets for domestic and foreign currency inside the former Soviet republic.

NAFT, however, stressed that investors would buy and sell at their own risk.

Furthermore, NAFT intends to create processes for issuing, registering, and circulating digital assets, allowing crypto organizations certified in Uzbekistan to develop their own tokens. However, despite the finished proposal, a decision has not been made.

The proposal also aims to establish processes for the registration, issuance and circulation of digital assets, authorizing licensed crypto companies in Uzbekistan to issue their own tokens. According to official records, the proposed amendments are open to discussion until May 14, 2021.

The report notes that the proposed changes have two weeks discussion period, which means the deadline for a decision is May 14th.

Uzbekistan and crypto trading

Crypto trading in the country has been fluctuating as it was legalized at the end of 2019.

Then, authorities in the country showed sympathy towards crypto and even provided some tax benefits for investors dealing with them.

In a twist, one year after, the President of Uzbekistan changed the country’s stance towards crypto adoption and made it illegal to purchase Bitcoin and any other digital assets.

However, Uzbekistan’s were able to sell amidst the ban if they could prove that the coins were purchased legally. Failing to do so, any transfers would count as illicit.

However, in January 2020, the country floated its first regulated crypto exchange Uznex.
However, residents cannot take advantage of the platform yet until the government reverses the ban. Locals might be allowed to take advantage of it.

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