The government of Uzbekistan has been looking up to crypto assets with higher hopes and is making developments citing the same.
Recently, the National Agency of Perspective Projects (NAPP), a department under the President of Uzbekistan, released a new regulation for crypto assets. The newly released regulatory framework deals with the procedures of the issue, registration, and release in the circulation of the crypto assets in the country.
The official document provides basic legal definitions for crypto assets and highlights the differences between their types. The framework also establishes guidelines highlighting the requirements for crypto issuers, depositaries, and custodians. It also determines the obligations each must adhere to, including those concerning customer relations.
Uzbek authorities have also approved rules for establishing and maintaining electronic records of crypto assets and their adoption. The records would hold data associated with adopting accounting standards for the rights relevant to them and their holders.
According to the authority, the crypto depositaries would be accountable for providing services for issuing, registering, circulating, and storing crypto assets. The issuers, however, are free to use their resources or other electronic platforms.
NAPP also pointed out that the nominal value of the assets must be expressed only in the national fiat, i.e., the Uzbekistani som. It has also banned the issuance of unsecured tokens. It has also prohibited the use of official and state authoritarian words like “state,” “state-secured,” “state-supported,” “Uzbekistan,” “Uzbek,” “national,” and “som” in the name of crypto.
The organization revealing its intention behind this regulatory framework has cited this new mechanism to help foster business firms in attracting investments and developing their activities by issuing and registering the issue of secured tokens. It has warned of strict action against unauthorized activities related to the circulation and issuance of crypto assets in the country.
With the ongoing developments and advancements in the crypto sector, the country’s government is trying to create a favorable scenario for local business firms to attract monetary gains and investment via coins and tokens.
It has also announced strict measures against using services by providers not licensed or recognized by the country’s government. These rules and regulations also apply to the firms involved in cryptocurrency mining.
Recently, the country’s government has been trying to be more progressive toward crypto. It has been working towards adopting and implementing comprehensive regulation of the crypto sector. It has also issued several decrees approved by President Shavkat Mirziyoyev and resolutions of the NAPP.
According to a declaration made public on November 17, Uzbekistan’s primary cryptocurrency market regulator, the National Agency for Perspective Projects (NAPP), has granted the country’s first cryptocurrency licenses. The licenses formally permit two “cryptocurrency stores,” namely Crypto Trade NET LLC and Crypto Market LLC, to provide services associated with cryptocurrencies.
NAPP’s official announcement stated “crypto shops” are designed to simplify buying or selling crypto assets. It also advised Uzbek residents to be “vigilant” and refrain from using electronic platform services if they have not been granted permission to do so correctly on the country’s territory.