September 25, 2022

Uzbekistan blocks access to websites of crypto exchanges unregistered in the country

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Uzbekistan blocks access to websites of crypto exchanges unregistered in the country

The National Agency for Perspective Projects of Uzbekistan (NAPP) announced the blocking of access to the websites of large cryptocurrency exchanges due to the lack of licenses to operate in the country.

According to the statement of the regulator, in the course of monitoringinformation resources, it was found that a number of electronic platforms that provide services to citizens of the Republic of Uzbekistan for trading or exchanging crypto assets operate without obtaining an appropriate license from service providers.

“Platforms request personal datacitizens without taking into account the requirement to install servers on the territory of the Republic of Uzbekistan. They are not legally responsible for carrying out transactions with crypto assets, they cannot guarantee the legitimacy of transactions, as well as the proper storage of confidential data. Given the above, access to electronic platforms (crypto-exchanges and electronic exchange platforms) that do not have a license of service providers is limited in accordance with the requirements of the legislation of the Republic of Uzbekistan,” the statement says.

Uzbekistan introduced licensing of cryptocurrencyexchanges a few years ago. In January 2020, the first licensed UzNex trading platform began operating in the republic. However, large platforms such as Binance ignored the regulator's registration requirements and did not receive the necessary permission to serve local traders.

Since August 9, access to websites has been banned in the countryFTX, Binance and other unregistered cryptocurrency exchanges. The NAPP encourages citizens of the country to report to the authorities if they discover that any unlicensed cryptocurrency platform continues to operate illegally in the republic.

In May, the President of Uzbekistan issued a decree onregulation of the cryptocurrency market, as well as the introduction of a fixed personal income tax rate and mandatory contributions to state trust funds for industry participants.