Uzbekistan blocks access to crypto exchanges operating without a license – CryptoActu

Binance, FTX, Kraken, Huobi and others are no longer in the odor of holiness on Uzbek territory. The authorities carried out their threats by blocking access to exchanges operating without authorization in the territory. A situation that could probably not last if the platforms comply with the prescribed rules.

Uzbekistan takes action by shutting down access to foreign crypto exchanges

The Uzbek government has blocked access to foreign-based crypto platforms on the grounds that they did not have the necessary license to offer their services to residents. To date, all exchanges the most popular are possibly concerned, even if few of them communicated on the event.

The announcement comes as local authorities have seen an increase in crypto activity linked to unauthorized companies. It is the National Agency for Perspective Projects (NAPP) which is responsible for making this known. Just recently designated as the sector’s chief comptroller by President Shavkat Mirziyoyev’s April decree on industry regulation, the newly formed agency is tasked with committing to adopting a “special regime for the regulation of cryptocurrencies”.

Unlicensed companies have no legal responsibility for transactions with crypto-assets and cannot guarantee the legitimacy of transactions, as well as the proper storage and protection of the privacy of personal data of citizens of the Republic of Uzbekistan.

Communicated of the NAPP

Only one exchange authorized for the moment in Uzbekistan

Fact, Starting January 1, 2023, individuals and businesses will only be able to conduct their crypto operations from domestic service providers that operate in accordance with local regulations. But by this official date, tolerance is no longer appropriate, underlines the press release.

From the moment when [le décret a été publié], we have not blocked foreign platforms, as we understand that our citizens have funds on these platforms. But this measure did not mean that citizens could trade safely on foreign platforms until January 1, 2023. This has already been prohibited since 2019.

Binance’s Chief Operating Officer in Eastern Europe, Gleb Kostarev, was the only one to report that the exchange’s website was unavailable to Uzbek users since Tuesday, noting that the ban also extends to Huobi, FTX, Bybit, Kraken and others.

Nowadays, Uzbekistan has only one regulated crypto exchange: Uznex, offshoot of the Korean group Kobea who assumed the role of technology advisor to the Uzbek government. But the situation could change, the regulator tempering its momentary firmnesssuggesting possibilities for agreement.

We are always ready to consider license applications from all major crypto exchanges if they wish to start their activities in the territory of Uzbekistan in accordance with the requirements of the law.

NAPP Statement

Binance, again, has declared itself in talks with the authorities to regularize the status of the platform.

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Uzbekistan blocks access to crypto exchanges operating without a license – CryptoActu

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