Uzbekistan may be preparing to make a U-turn in the legal framework regarding cryptocurrencies. Reportedly, the country could lift its recently launched ban.
The Presidency of the Republic of Uzbekistan National Project Management Agency (NAFT) has published plans to lift some crypto restrictions in the country. The government agency proposed allowing citizens to purchase digital assets for both local and foreign currency within the former Soviet republic.
Uzbekistan may lift cryptocurrency ban
NAFT, one of the main government agencies in Uzbekistan, aims to lift some bans on digital assets and allow their citizens to work with them, according to a local report. 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.
NAFT’s goal is to create processes for launching, recording and circulating digital assets so that certified crypto institutions in Uzbekistan develop their own tokens. The report reported that the proposed changes are a two-week discussion period until May 14th.
It was legalized in 2019; but with “strange” rules
Crypto trade in Uzbekistan has been opened and closed frequently 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. People could only trade 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 citizens, but if the government actually lifts the ban, local residents can be allowed to take advantage of it.