While other countries have imposed stricter measures against crypto trading within their jurisdictions, Uzbekistan seems to be taking a different approach. The government is now allowing its residents to trade crypto as long as it’s done on licensed trading platforms.
Uzbekistan has loosened restrictions on crypto trading allowing its citizens to trade in digital currencies on licensed exchanges. This was made possible after the National Agency for Project Management (NAPM) made amendments to the rules on domestic crypto trade, Bitcoin.com reported.
Under the new regulations, Uzbekistan citizens can now buy, sell, or exchange their cryptos for the local currency. Meanwhile, non-residents are also allowed to exchange cryptos for foreign currencies.
Crypto trading was legalized in the country back in 2018 but the government eventually banned citizens from purchasing cryptos in late 2019. However, there is no restriction if they want to sell their crypto holdings at that time.
The Uzbekistan government decided to lift the restrictions due to the changing investor approach to crypto investing. According to the NAPM, local investors are now becoming “more rational and balanced.”
In September, the NAPM warned citizens from trading on unregistered platforms. The agency reminded that crypto exchanges need to obtain a license to operate as mandated by the presidential decree “On measures to develop the digital economy in the Republic of Uzbekistan” and the law “On licensing and notification procedures.”
There NAPM also made amendments regarding the trading and issuance of digital tokens. The agency banned the listing of tokens that are not secured by tangible or other property.
Aside from the recently revoked domestic crypto trading restrictions, Uzbekistan’s government is generally friendly towards crypto activities. For instance, plans for the creation of a blockchain valley, the establishment of a national mining pool, and the introduction of crypto tax exemptions were announced early this year. South Korea’s Kobea Group also launched the digital asset trading platform Uznex in February.