Uzbekistan allows foreign firms to store funds from crypto trading, restricts other operations
The Central Bank of the Republic of Uzbekistan has adopted amendments to the Rules for transactions in foreign currency relating to non-resident legal entities, including crypto entities. Notably, he is now allowed to have a local bank account but is now narrow on the option of working with funds coming from cryptocurrency trading.
Funds transferred from foreign accounts of companies participating in crypto exchanges or proceeds from the sale of crypto currency assets can be deposited in foreign currency accounts in Uzbekistan according to the latest regulations and legal information portal Norma.uz announced. And gave his order regarding this. Of course these funds can either be used to buy digital coins again or transferred to the exchange of accounts registered abroad from where the principal came from. However, their use has been completely banned in Uzbekistan for other countries as per reports. The introduced changes have come into effect from 9th February 2023 and before that date the foreign company which is not a resident could not have bank accounts in Uzbekistan with some exceptions envisaged by the law and the Uzbekistan government to regulate its crypto market. It is taking aimless steps. At the end of 2022, the National Agency of Perspective Projects (NAPP), the authority overseeing the sector under President Shavkat Mirziyoyev, approved all kinds of regulations related to the issuance and operation of crypto assets.
The agency also regulated the licensing of crypto exchanges and five trading platforms are now authorized to operate in the country – the state-controlled exchange Uznex and four smaller “crypto shops”. Meanwhile, authorities in the capital Tashkent are restricting attempts to access the foreign trading site.
Residents of Uzbekistan were allowed to trade digital currencies on the domestic exchange in November 2021, and all crypto-related transactions are exempt from tax. Crypto service providers in Uzbekistan are required to pay a monthly fee and earlier this month, the NAPP revealed that licensed companies paid over $310,000 to the budget last year.
