The Central Bank of the Republic of Uzbekistan has recently issued amendments to its regulations for foreign exchange transactions for non-resident legal entities, including those working with cryptocurrencies. According to the new rules, money transferred from foreign accounts of companies participating in crypto exchanges or amounts received from the sale of crypto assets can be deposited into foreign currency accounts in Uzbekistan.
These funds can then be transferred to an exchange in order to buy digital coins or to the accounts of the foreign-registered entities in the jurisdictions from which the money originally came. However, their use for other purposes in Uzbekistan is prohibited. The changes have entered into force on Feb. 9, 2023.
The government of Uzbekistan has been taking steps to regulate its crypto market. In late 2022, the National Agency of Perspective Projects (NAPP) under President Shavkat Mirziyoyev approved rules for the issuance and circulation of crypto assets. The agency also regulated the licensing of crypto exchanges. Five trading platforms are now authorized to operate in the country — the state-controlled exchange Uznex and four smaller “crypto shops.”
Residents of Uzbekistan were allowed to trade digital currencies on domestic exchanges in November 2021. While crypto-related transactions are tax free, crypto service providers in Uzbekistan are required to pay monthly fees. Earlier this month, the NAPP revealed that licensed crypto companies have paid over $310,000 to the budget last year.
The Central Bank of Uzbekistan has now taken a step further and has permitted foreign-based businesses to open domestic bank accounts and deposit funds received from cryptocurrency trading. These companies will also be able to transfer the money abroad, but operations in the country will be restricted. The bank has allowed these companies to have accounts at local banks, which was not possible before Feb. 9, 2023.
The new regulations are part of the government’s efforts to create a safe and secure environment for crypto trading. The authorities are also trying to restrict access to foreign trading websites in order to protect local investors from potential risks.
The Central Bank of Uzbekistan’s decision to allow foreign-based businesses to open domestic bank accounts and deposit funds from crypto trading is a positive development for the country’s crypto market. It will help to create a more transparent and secure environment for investors and traders. Moreover, it will also ensure that the funds received from crypto trading are used in a responsible manner.
The new regulations are a testament to the government’s commitment to creating a secure and stable environment for crypto trading. The rules will help to ensure that the crypto market in Uzbekistan remains safe and secure. Furthermore, they will also ensure that the funds received from crypto trading are used in a responsible manner and that the money is not misused.
