Overview of Uzbekistan’s Updated Crypto Regulations
The Central Bank of Uzbekistan has updated its regulations, allowing foreign-based companies to deposit funds from cryptocurrency trading in domestic bank accounts. However, the options for operating with these funds in the country remain narrow. Non-resident legal entities are now permitted to have accounts in local banks and transfer money abroad. But, the use of these funds for other purposes within Uzbekistan is prohibited.
Changes for Foreign-Based Companies Working with Cryptocurrencies
According to Norma.uz, foreign companies participating in cryptocurrency exchanges can transfer money from foreign accounts or received from the sale of crypto assets into foreign currency accounts in Uzbekistan. These funds can be transferred back to cryptocurrency exchanges or to the accounts of foreign-registered entities. The changes were enacted on Feb. 9, 2023.
Options for Operating with Funds from Crypto Trading in Uzbekistan
The Uzbek government has been working to regulate its crypto market, with the National Agency of Perspective Projects (NAPP) approving rules for the issuance and circulation of crypto assets in late 2022. The agency has also regulated the licensing of crypto exchanges, with five trading platforms now authorized to operate in the country.
The Growing Regulation of Uzbekistan’s Crypto Market
Residents of Uzbekistan have been able to trade digital currencies on domestic exchanges since November 2021. Crypto-related transactions are tax-free, but crypto service providers are required to pay monthly fees. Last year, licensed crypto companies paid over $310,000 to the budget, according to the NAPP.
Implications of Uzbekistan’s Updated Crypto Regulations
By updating its regulations, Uzbekistan is moving towards regulating its crypto market and providing a more favorable environment for foreign-based crypto companies. While the options for using funds from cryptocurrency trading within the country remain limited, the new regulations could encourage further investment in Uzbekistan’s crypto market.