After announcing a new regulatory framework in May 2022, Uzbekistan is making headlines again by blocking access to Binance, FTX and other centralized exchanges (CEX). Coinpri explains everything so that you can shine at your next blockchain conference.
- Uzbekistan, cryptos and blockchain, the recap to co-understand the Binance and FTX case
- 2018, the first legal frameworks for blockchain in Uzbekistan
- 2019, the country integrates blockchain and… bans the purchase of cryptocurrencies
- 2020, Uznex a government approved exchange for … foreigners?!
- 2021, by dint of turning one’s coat, one puts it back on the right side
- 2022, where is Uzbekistan before talking about the case of Binance and FTX?
- Uzbekistan, a block on Binance, FTX, Huobi and Bybit
Uzbekistan, cryptos and blockchain, the recap to co-understand the Binance and FTX case
For the most uneducated among you (ed. note: and us) not being aware of the situation of blockchain and cryptocurrencies in Uzbekistan here is a quick recap.
2018, the first legal frameworks for blockchain in Uzbekistan
Recognizing the potential of blockchain, President Shavkat Mirziyoyev begins to implement laws to frame cryptocurrency-related businesses.
The country launches the creation of Digital Trust, a state fund to accelerate the development of blockchain in the country.
It also allows crypto trading for its citizens on local exchanges the same year, provided they get a license (ed. note: keep that in mind).
2019, the country integrates blockchain and… bans the purchase of cryptocurrencies
Continuing the momentum, Uzbekistan approved a decree in July to integrate blockchain into the country’s administration.
Alas, on December 22, a reversal of fortune, the country publishes an ordinance banning its citizens from buying or selling cryptos.
In order not to leave holders on the sidelines, the country authorizes them as great lords to be able to sell them on Forklog and Sputnik (two exchanges validated by the government).
2020, Uznex a government approved exchange for … foreigners?!
In January 2020, only a few days after the ban on buying/selling its crypto-currencies, the country proudly announces the launch of Uznex.
Apart from smiling at the somewhat cliché name of the government-regulated platform, you should be thinking:
“wait, why launch an exchange if citizens can’t buy or sell? That’s so stupid!”
Well yes, but no…. This exchange was indeed intended for foreign investors to help the development of the country. Not sure that the operation was a success…
2021, by dint of turning one’s coat, one puts it back on the right side
The Uzbek soap opera continues with a complete reversal of the government in 2021. It proposes in May 2021 the complete legalization of cryptocurrencies…
2022, where is Uzbekistan before talking about the case of Binance and FTX?
Well, the country continues its adoption of cryptocurrencies by approving the use of solar energy for mining. By changing the tax regimes on companies and individuals using cryptos…
It even announced in May a complete restructuring of its presidential agency, the National Agency for Project Management (NAPM).
This will become the NAPP (National Agency for Perspective Projects) and will be in charge of the regulation of cryptocurrencies. A regulation in which currently falls Binance and FTX.
Uzbekistan, a block on Binance, FTX, Huobi and Bybit
It seems that the country did not appreciate that Binance, FTX, Huobi and Bybit are having fun providing services to its citizens without having obtained its licenses..
Here is what the NAPP said:
“…it has been identified that to date there is an intensification of activities of various electronic platforms that provide services to citizens of the Republic of Uzbekistan on trading and/or exchange of crypto-assets without obtaining the required license for the activities of service providers on the territory of the country.”NAPP statement
Citing that these cannot “ensure proper storage and protection of the privacy of personal data of citizens,” the country strongly recommended that its citizens be wary of the platforms. An advice that the government has slightly supported by blocking access to them …
But let our Uzbek readers be reassured, they just have to follow the government’s advice instead: use the Uznex exchange (ed. note: surprisingly, finally it is allowed for them now?) while waiting for the CEX to get the precious license.
As President Shavkat Mirziyoyev was re-elected in October 2021 for a five-year term, the country still has time to change or to turn around. In any case, we can’t blame them for not changing their minds, so Binance, FTX, Coinbase and other CEX just have to wait…
CEO and Editor-in-Chief of Coinpri I have been navigating the waters of Blockchain for 5 years already.
Wait, I can see the Promised Land of Adoption in the distance.