Uzbekistan authorities restrict crypto sales, bans buying

Just last year, Uzbekistan legalized cryptocurrency trading and introduced licensing for exchanges with a presidential decree, it has now become a crime to sell crypto in the country.

Authorities in the central Asian country has effectively banned residents from purchasing cryptocurrencies or digital asset formerly licensed in the country.

As it stands currently in the country, crypto holders can only sell their coins if they have not been obtained through anonymous transactions.

The country which once looked like a promising destination for crypto trading had legal grounds for activities related to the circulation of digital coins however, things have turned otherwise now.

Authorities in charge call for change

National Agency for Project Management in Uzbekistan recently adopted amendments to the regulatory regime that significantly limit options for local private individuals using cryptocurrency.

The new dawn on cryptocurrency in Uzbekistan will see that Uzbekistani’s can only sell crypto assets on registered exchanges and using decentralized cryptos as a means of payment is now prohibited in the country.

What necessitated the move?

It should be noted that Uzbekistan authorities put in several measures to see to it that they become a force to reckon with globally in the crypto space.

The government signed an agreement with the Korean Blockchain Business Association to help implement the Uzbekistan Revolution 4.0 project.

The revolution project was aimed at primarily developing blockchain space in the country through collaboration with experienced contemporaries.

Outside this, the government expected crypto companies to generate additional revenues for Uzbekistan’s commercial banks that provide services to the sector not giving up on their intention to accommodate crypto businesses in the country.

From the onset of crypto disrupt in the country, crypto exchanges have been obliged to keep records of all trades conducted on their platforms for at least five years.

In line with that, violations of the country’s laws should also be recorded and reported to Uzbekistan’s law enforcement in writing.

It is, however, unclear whether there’s been any substantial progress on this track since all these structures were put in place.

Earlier in 2019, the global standards on crypto-assets adopted the Financial Action Task Force (FATF) in June to punish crypto law violators.

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