Uzbekistan defines cryptocurrency trading rules

The National Project Management Agency under the President of the Republic of Uzbekistan has determined the rulestrading in digital assets, as well as amended the Regulation on the licensing of cryptocurrency exchanges.

The Rules define the basic conceptsthe cryptocurrency industry, the procedure for interacting with exchanges, the process of conducting trades and settlements on exchanges, as well as the requirements for informing customers and advertising, given the volatility of cryptocurrencies and the risks associated with them.

According to the rules, citizens of Uzbekistan canmake transactions on the sale of digital assets on exchanges, however, it is forbidden to conduct transactions with cryptocurrencies for which transactions were previously anonymous. In addition, in Uzbekistan, cryptocurrencies cannot be used as a means of payment.

As for cryptocurrency exchanges, they canallow only those users who have passed the mandatory identification procedure to bid, and for this it is necessary to introduce special mechanisms. The exchanges are forbidden to work with minor citizens and with persons suspected of the proliferation of weapons of mass destruction, terrorism and its financing, as well as money laundering.

Exchanges are required to store all information relating tobidding and identified cases of non-compliance with the law and the Rules for five years, and if signs of violations are detected — immediately report to law enforcement agencies.

According to the Agency, when developing the rules, specialattention was paid to compliance with the standards of the Financial Action Task Force (FATF). The country's authorities said that the Rules are aimed at clearly regulating cryptocurrency activities, and this is an important step in the development of the digital economy of the Republic of Uzbekistan. In particular, the Rules will protect the interests of users, will help attract direct investment in Uzbekistan and provide additional income to commercial banks serving cryptocurrency exchanges.

Recall that in September last year, Uzbekistan allowed to open exchanges only to foreign legal entities through the establishment of subsidiaries or other enterprises in the country.

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