Uzbekistan blocks access to foreign crypto exchanges due to unregistered trading

Having previously taken significant steps towards a moderate approach towards crypto, the government of Uzbekistan announced on Wednesday that it has restricted access to a number of major international crypto exchanges due to accusations of unlicensed activity.

The National Agency for Perspective Projects (NAPP) reported on August 10 that "several electronic platforms" provide services for trading and exchange of crypto assets without obtaining the necessary license in violation of the current legislation, and therefore access to them has been restricted. However, the tone of the statement suggested that after obtaining a license and fulfilling the requirement to deploy servers on the territory of the Republic of Uzbekistan as stipulated by law, there should be no further obstacles for foreign exchanges to offer their services. As it is for now: "They have no legal responsibility for transactions with crypto assets and cannot guarantee the legitimacy of transactions, as well as proper storage and protection of the confidentiality of personal data of citizens of the Republic of Uzbekistan." The current legislation referred to is the presidential decree of July 3, 2018 "On measures to develop the digital economy and the sphere of cryptoasset turnover in the Republic of Uzbekistan". NAPP gained the status of the main crypto regulator in the country quite recently - at the end of April 2022, President Shavkat Mirziyoyev issued a decree on regulating the industry, linking the newly established agency to the mission of adopting a "special crypto regulatory regime" in Uzbekistan. In June, the NAPP said it would only allow companies using solar energy to mine Bitcoin (BTC) or other cryptocurrencies in the country. The executive order also mandated that any mining operator obtain a certificate and register with the national registry of crypto mining companies.