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Uzbekistan allows foreign companies to deposit funds from crypto trading, restricts other operations – regulation

The Central Bank of Uzbekistan has allowed foreign-based companies to open domestic bank accounts and deposit funds obtained from trading with cryptocurrencies have received. These companies can also send the money abroad, but operations in the country will be limited.

Uzbekistan updates rules for operations with proceeds from crypto exchange transactions

The Central Bank of the Republic of Uzbekistan has adopted changes to its regulations on foreign exchange transactions affecting non-resident legal entities, including those working with cryptocurrencies. Notably, they are now allowed to have accounts in local banks, but opportunities to work with cryptocurrency trading funds are limited.

According to the new rules, funds transferred from foreign accounts of companies participating in crypto exchanges or funds from the sale of crypto assets can be deposited in foreign currency accounts in Uzbekistan, legal information portal said, quoted by Crypto News Socket Forklog.

These funds can then either be sent to an exchange to buy digital coins again, or to the accounts of foreign-registered companies in the jurisdictions the funds originally came from. However, their use for other purposes is banned in Uzbekistan, the report said.

The changes went into effect on February 9, 2023. Before that date, foreign non-resident companies could not open accounts in Uzbek banks, with few exceptions provided by law.

The government of Uzbekistan has taken steps to regulate its crypto market. In late 2022, the sector regulator, the National Agency of Perspective Projects (NAPP) under President Shavkat Mirziyoyev, approved rules for the issuance and circulation of crypto assets.

The agency also regulated the licensing of crypto exchanges. Five trading platforms are now licensed to operate in the country – the state-controlled exchange Uznex and four smaller “crypto shops”. Meanwhile, authorities in Tashkent 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 crypto-related transactions are tax-free, crypto service providers in Uzbekistan have to pay monthly fees. Earlier this month, NAPP revealed that licensed crypto companies contributed over $310,000 to the budget over the past year.

Do you think foreign crypto companies will avoid working in Uzbekistan due to recent restrictions on using crypto related funds? Do share your thoughts on this topic in the comments section below.

Uzbekistan allows foreign companies to deposit funds from crypto trading, restricts other operations – regulation, Crypto Trading News

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchen’s quote: “Being a writer is what I am, not what I do.” Besides Crypto, Blockchain and fintech, international politics and business are two other sources of inspiration.

photo credit: Shutterstock, Pixabay, WikiCommons

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Source: Crypto News Deutsch

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