Uzbekistan restricts the use of proceeds from crypto exchanges for non-residents

Foreign traders can only spend the funds received to buy digital assets or repatriate them abroad

15.02.2023 - 16:20

356

1 min

What’s new? Uzbekistan’s Central Bank has restricted the use of foreign currency funds for non-residents on local crypto trading platforms. Thus, foreign legal entities can transfer assets from foreign accounts and proceeds from the sale of cryptocurrencies to their foreign currency accounts. However, they can only spend this money to buy cryptocurrencies, or transfer it to an account in the country where the funds came from. Using it for other purposes is not allowed.

Resolution of the Central Bank of Uzbekistan

Cryptocurrencies and Uzbekistan. In August 2022, the National Agency of Perspective Projects of the Republic of Uzbekistan (NAPP) restricted access to unlicensed cryptocurrency exchanges and exchangers, including foreign platforms. The regulator noted that such companies are not legally liable and cannot guarantee the legitimacy of transactions.

The NAPP also presented a document, according to which only legal entities can engage in mining in the country, and green electricity obtained with solar photovoltaic stations should be used during the operation.

In September, the Uzbek authorities set the amount of monthly fees for cryptocurrency companies, particularly legal entities-miners, and providers in the field of digital assets.

Author: