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Uzbekistan Allows Foreign Firms to Deposit Funds from Crypto Trading, Limits Other Operations – Regulation Bitcoin News
Uzbekistan’s central bank has allowed 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 limited.
Uzbekistan updates rules for operations with proceeds from crypto exchange transactions
The Central Bank of the Republic of Uzbekistan has adopted changes to its regulations for currency transactions concerning non-resident legal entities, including those working with cryptocurrencies. In particular, they are now allowed to have accounts in local banks, but the possibilities of operating with funds from cryptocurrency trading are narrow.
According to the new rules, money transferred from foreign accounts to companies participating in crypto exchanges or amounts received from the sale of crypto assets can be deposited into foreign currency accounts in Uzbekistan, the legal information portal Norma.uz announced, cited by the crypto news. outlet Forklog.
These funds can then either be transferred to an exchange to again purchase 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 is prohibited in Uzbekistan, the report revealed.
The changes have entered into force on 9 February 2023. Before that date, foreign non-resident companies could not open accounts in Uzbekistan’s banks with few exceptions provided for by law.
The government of Uzbekistan has taken steps to regulate its crypto market. In late 2022, the authority overseeing the sector, the National Agency of Perspective Projects (NAPP) under President Shavkat Mirziyoyev, approved rules for the issuance and circulation of cryptoassets.
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.” Meanwhile, the authorities in Tashkent have tried to restrict access to foreign trade websites.
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, NAPP revealed that licensed crypto companies paid over $310,000 to the budget last year.
Do you think foreign crypto companies will avoid working in Uzbekistan due to the recent restrictions on the use of crypto-related funds? Share your thoughts on the topic in the comments section below.
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