Uzbekistan allows Crypto trading funds to be deposited…..
Uzbekistan has recently updated its regulations on foreign exchange transactions, allowing foreign-based businesses to deposit funds received from cryptocurrency trading into domestic bank accounts. However, these companies will face restrictions on operations within the country. The amended rules also permit non-resident legal entities, including those working with cryptocurrencies, to have accounts at local banks, but their options for operating with funds from crypto exchanges are limited.
According to the new regulations, foreign accounts of companies involved in crypto exchanges, or funds received from the sale of crypto assets, can be deposited into foreign currency accounts in Uzbekistan. These funds can then be transferred to an exchange to buy digital coins or to the accounts of foreign-registered entities in the countries from which the money came. However, the use of these funds for other purposes in Uzbekistan is prohibited.
These changes came into effect on February 9, 2023. Prior to this, foreign non-resident companies were unable to open accounts in Uzbekistan’s banks, with only a few exceptions allowed by law.
In recent years, the government of Uzbekistan has been taking steps to regulate its crypto market. In 2022, the National Agency of Perspective Projects (NAPP) under President Shavkat Mirziyoyev approved rules for the issuance and circulation of crypto assets, as well as regulated the licensing of crypto exchanges. Currently, there are five authorized trading platforms in the country, with the state-controlled exchange Uznex and four smaller “crypto shops”. However, the authorities in Tashkent have been trying to restrict access to foreign trading websites.
Residents of Uzbekistan were permitted to trade digital currencies on domestic exchanges in November 2021. While crypto-related transactions are tax-free, crypto service providers in Uzbekistan are required to pay monthly fees. In January 2023, the NAPP reported that licensed crypto companies had paid over $310,000 to the budget in 2022.
CleverRobot newsdesk 17th February 2023.