Uzbekistan bans the buying of Bitcoin and other cryptocurrencies for the residents. The National Agency of Project Management of the soviet republic has made regulatory amendments regarding cryptocurrencies. And now it is illegal to purchase digital currencies across the Uzbekistan border. However, the citizens can sell off their holdings by proving those transactions were through reliable and legal platforms. If not, the transactions will be marked illegal. This news and the country has become a point of discussion in the crypto universe.
This amendment will also not allow cryptocurrency as a payment mode. The registered exchanges will only entertain investors with verified identities and their names not in the list of suspects of money laundering and terror financing.
Uzbekistan Pro Cryptocurrency
The Uzbekistan authorities made crypto trading legalized last year and also introduced exchange licensing. The country provided several tax benefits too. An official order signed by President Shavkat Mirziyoyev prepared legal grounds for digital asset-related activities. Uzbekistan seemed to be a positive destination for the Crypto business. In fact, to expand the digital asset business of the country, the government signed a pact with the Korean Blockchain Business Association. The aim was to provide the required support to successfully execute the Uzbekistan Revolution 4.0 project. The project focused on strengthening the blockchain network by establishing trading exchanges, blockchain academies and legalizing ICOs. But currently, the situation doesn’t seem suitable as exchanges won’t be subject to existing foreign currency regulations. And income from crypto will not be taxed as well.
FATF inspired amendments
Currently, the crypto exchanges within the country require keeping all the trading records of their platforms for the past 5 years. Any violation of any law should be recorded as well. Reportedly, these new demands are inspired by the global standards on crypto-assets by Financial Action Task Force (FATF).
However, the authorities still haven’t been hopeless for the crypto business in the country. The project management authority hopes that in spite of the tightening of the newly adopted rules, it will attract foreign investments. The executive power in Tashkent also believes that the crypto companies will generate revenue for the country’s commercial banks and will provide services.