In recent years, the government of Uzbekistan has proven to be a very crypto-friendly state. Many steps taken by the Uzbekistani Government have proven to be very advantageous for the world of cryptocurrencies.
Over the years, both the local as well as foreign cryptocurrency exchanges were able to thrive in the country. However, the country seems to have changed its policy around the cryptocurrency industry.
The country is now determined to ensure that every local or foreign entity operating in Uzbekistan is fully adherent to the regulatory guidelines.
They must adhere to the protocols that the government of Uzbekistan has put in place surrounding cryptocurrencies.
Uzbekistan Restricts Major International Crypto Exchanges
In recent days, Uzbekistani Government has reportedly restricted access to many international cryptocurrency exchanges with large networks in the country.
The government of Uzbekistan has accused these exchanges of providing their cryptocurrency services in the country without a proper operating license.
Based on the above claim, the government considers them to be illegal and unauthorized activities in the country.
Report by NAPP
It was on August 10, that a report was submitted by the National Agency of Perspective Projects where it highlighted such trading platforms.
The report revealed that various electronic platforms currently providing their services to the locals are doing it without any proper license or authorization.
The report confirmed that the majority of these platforms are operating as cryptocurrency exchanges or cryptocurrency trading platforms.
Therefore, operating in Uzbekistan without proper authorization or license is a violation of their legislation. This is the reason why access to these cryptocurrency exchanges and trading platforms has been restricted.
A Positive Indication for the Cryptocurrency Sector
Despite restricting access to cryptocurrency exchanges and trading platforms, the country has given them the ability to apply for the proper license.
This is a good sign for the entire cryptocurrency industry as the country is not barring the entire cryptocurrency sector. Instead, it is barring only the crypto exchanges and trading platforms that are unregistered or unlicensed to operate.
Once they acquire the license, they will be allowed to deploy their services in Uzbekistan. This means that the cryptocurrency industry is allowed to operate in Uzbekistan but it must adhere to the local regulatory laws.
Government of Uzbekistan’s Claim against Unlicensed Crypto Firms
According to the government, cryptocurrency firms operating without a license have no legal obligations or responsibility in terms of cryptocurrency assets and transactions.
Such platforms do not adhere to the regulatory guidelines as they feel no fear of breaking them. These platforms may also misuse the personal and financial data of the locals of Uzbekistan.