Uzbekistan bans citizens from buying cryptocurrencies, but not selling

The authorities of Uzbekistan have actually banned residents of the country from buying cryptocurrencies on digital exchanges. According toWith new amendments to local legislation, cryptocurrency owners will only be able to sell their coins if they were not obtained through anonymous transactions.

Let us recall that last year, the Central AsianThe republic legalized cryptocurrency trading and introduced a licensing procedure for exchanges. For some time, the country looked like a promising destination for crypto business. However, the National Project Management Agency under the President of the Republic of Uzbekistan has introduced restrictions on the opportunities for local residents using cryptocurrency. According to a new order issued by the agency in early December, citizens of Uzbekistan will be allowed to sell crypto assets only on registered trading platforms. In addition, the use of decentralized cryptocurrencies as a means of payment is prohibited in the country.

In addition, the regulator introduced a ban on transactionswith coins purchased through anonymous transactions, although it remains unclear how regulators will monitor this process. Trading platforms must only serve users who provide personal information, who are over 18 years of age, and who are not listed on the government's money laundering and terrorist financing watch list.

Cryptocurrency exchanges are required to keep records of all transactionsfor at least five years. Any violations of the laws of the country will be recorded and reported to the law enforcement authorities of Uzbekistan in writing. These new requirements were based on global standards for crypto assets adopted by the FATF in June this year.

However, the Uzbek authorities did not refusecompletely from its original plan to develop crypto business in the country. President Mirziyoyev's Project Management Agency expects that, despite the strictness of the adopted rules, the overall regulatory framework will attract new foreign investment.

After the crypto industry receivedofficial recognition in the country, Uzbekistan sought to adopt the experience of more advanced countries in this direction. Even then, the government signed an agreement with the Korean Blockchain Business Association to implement the Uzbekistan Revolution 4.0 project, aimed at developing technology in the country. Whether progress has been made in this direction is currently not known.