The Central Bank of Uzbekistan has allowed foreign-based companies to open domestic bank accounts and deposit funds received from cryptocurrency transactions. These firms may also send money abroad, but their domestic operations will be restricted.
Uzbekistan Updates Regulations on Operations Involving Revenue from Crypto Exchange Transactions
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The Central Bank of the Republic of Uzbekistan adopted amendments to theRegulationson foreign exchange transactions involving non-resident legal entities, including companies dealing in cryptocurrencies. In particular, they are now allowed to have an account in a local bank, but the option to operate with funds coming from cryptocurrency transactions is narrow.
According to the new rules, money transferred from foreign accounts of companies participating in crypto exchanges and amounts received from the sale of crypto assets can be deposited in foreign currency accounts in Uzbekistan, the legal information portal Norma.uz announced. Quoted by crypto news outlet Forklog.
These funds can then be transferred again to an exchange to purchase digital coins or to an account at a foreign registered business in the region where the funds originally came from. However, the use of the funds for any other purpose in Uzbekistan is prohibited, the report clarifies.
The change took effect on February 9, 2023. Prior to that date, foreign non-resident companies could not open accounts in Uzbek banks, with a few exceptions envisaged by the law.
The Uzbek government has taken steps to regulate the crypto market: at the end of 2022, the authority overseeing the sector, the National Agency for Prospective Projects (NAPP) led by President Shavkat Mirziyev, issued and approved the rules for the issuance and distribution of crypto assets.
It also regulated the licensing of crypto exchanges. Currently, five trading platforms, the state-run exchange Uznex and four smaller “crypto stores,” are authorized to operate in the country. Meanwhile, Tashkent authorities are trying to restrict access to foreign trading sites.
Residents of Uzbekistan were allowed to trade digital currencies on domestic exchanges in November 2021. Crypto-related transactions are tax-free, but crypto service providers in Uzbekistan must pay a monthly fee. Earlier this month, NAPP revealed that licensed crypto companies paid more than $310,000 to the budget last year.
Do you think foreign crypto companies will avoid working in Uzbekistan because of the latest restrictions on the use of crypto-related funds? Share your thoughts on the subject in the comments section below.
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