The former Soviet republic could make a U-turn using trading and cryptocurrencies and lift the recently launched ban.
The Presidency of the Republic of Uzbekistan National Project Management Agency or NAFT has issued plans to lift some crypto restrictions in the country. The government agency proposed allowing residents of the country to purchase digital assets for both local and foreign currency within the former Soviet republic.
Will Crypto Coins Return in Uzbekistan?
According to a local report, NAFT, one of the main government agencies in Uzbekistan, aims to lift some bans on digital assets and allow its citizens to work with them. According to the scope, the institution will allow Uzbeks to carry out “any crypto exchange that includes crypto assets and tokens in exchange for both local and foreign currencies”.
However, officials stated that the trading process with cryptocurrencies hides the risks and that each individual should pay more attention to them.
In addition, the purpose of NAFT is to create processes for publishing, recording and circulating digital assets, thus allowing certified crypto institutions in Uzbekistan to develop their own tokens. The report reported that the proposed changes are a two-week discussion period until May 14th.
Change of Mind
Crypto trading in Uzbekistan has been opened and closed in recent years. At the end of 2019, the use of cryptocurrencies in the country was legalized. Until then, the former Soviet republic was sympathetic to digital assets and even provided some tax benefits for investors interested in them.
But a year later, the President of Uzbekistan changed the country’s attitude to crypto adoption and made it illegal to buy Bitcoin and other digital assets. Interestingly, there were exceptions to the ban as citizens were able to sell them, but they were only subject to this exception if they could prove that cryptocurrencies were originally purchased legally. Otherwise, any transfer would be considered illegal.
Moreover, in January 2020, the Asian country launched Uznex, the first regulated crypto exchange. However, the platform is not yet open to Uzbekistan residents, but if the government actually lifts the ban, local residents could be allowed to take advantage of it.