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

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

According to the regulator, duringMonitoring of information resources has established that a number of electronic platforms providing services to citizens of the Republic of Uzbekistan for trading or exchanging crypto assets operate without obtaining an appropriate service provider license.

“Platforms ask for 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 the transactions carried out, as well as the proper storage of confidential data. Taking into account the above, access to electronic platforms (crypto exchanges and electronic exchange platforms) that are not licensed service providers is limited in accordance with the requirements of the legislation of the Republic of Uzbekistan,” the statement says.

Uzbekistan has introduced licensing of cryptocurrencyexchanges several years ago. In January 2020, the first licensed trading platform UzNex 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 prohibited in the countryFTX, Binance and other unregistered cryptocurrency exchanges. 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.