Uzbekistan Allows Foreign Firms to Deposit Funds From Crypto Trading, Restricts Other Operations

The Central Bank of Uzbekistan has allowed foreign companies to open domestic bank accounts and deposit funds received from cryptocurrency trading. These companies will also be able to transfer money abroad, but domestic transactions will be limited.

Uzbekistan updates the rules for transactions with income from crypto exchange operations

The Central Bank of the Republic of Uzbekistan adopted changes in regulations on currency exchange transactions that relate to non-resident legal entities, including those working with cryptocurrencies. In particular, they are now allowed to have accounts in local banks, but the possibilities for working with funds received from cryptocurrency trading are limited.

According to the new rules, money transferred from foreign accounts of companies participating in crypto exchanges, or amounts received from the sale of crypto assets, can be credited to foreign currency accounts in Uzbekistan, the legal information portal reports. announcedquoted by Forklog news portal.

These funds can then either be transferred to an exchange to repurchase digital coins, or to accounts of persons registered abroad in the jurisdictions from which the money was originally received. However, their use for other purposes is prohibited in Uzbekistan, the report said.

The changes came into effect on February 9, 2023. Prior to this date, foreign non-resident companies could not open bank accounts in Uzbekistan, with some exceptions provided for by law.

The government of Uzbekistan is taking steps to regulate its crypto market. At the end of 2022, the body in charge of the industry, the National Agency for Advanced Projects (FEW) under President Shavkat Mirziyoyev, the rules for the issuance and circulation of crypto assets were approved.

The agency also regulated the licensing of crypto exchanges. Currently, five trading platforms are allowed to operate in the country — the state-controlled exchange Uznex and four smaller “crypto-shops”. Meanwhile, the Tashkent authorities are trying to restrict access to foreign trade sites.

Residents of Uzbekistan were allowed to trade digital currencies on domestic exchanges in November 2021. While transactions related to cryptocurrencies are not taxed, crypto service providers in Uzbekistan are required to pay monthly fees. Earlier this month, NAPP reported that licensed crypto companies paid more than $310,000 into the budget last year.

Do you think that foreign crypto companies will avoid working in Uzbekistan due to the latest restrictions on the use of crypto funds? Share your thoughts on this subject in the comments section below.

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