The National Project Management Agency of the Government of Uzbekistan (NAFT) has published plans to remove some cryptocurrency restrictions in the country.
The Uzbek government agency has proposed allowing locals to purchase cryptocurrencies in local and foreign currencies within Uzbekistan.
Will the ban on crypto be lifted permanently in Uzbekistan?
According to a local report, NAFT – which is one of the main government institutions in Uzbekistan – intends to lift some bans on digital currencies and enable citizens to deal with them.
According to the same report, the agency will allow all types of cryptocurrency exchanges in exchange for local and foreign currencies.
The authorities explained that the cryptocurrency trading process hides its risks, and everyone must deal with it with care and caution.
NAFT aims to establish processes for issuance, registration and circulation of digital currencies, thus allowing accredited cryptocurrency companies in Uzbekistan to develop their own digital currencies.
The report notified that the proposed changes have a two-week discussion period, meaning that their studies will be extended until May 14.
Changing perception towards cryptocurrencies:
Cryptocurrency trading in Uzbekistan has been out of business in recent years.
At the end of 2019, a law was passed stressing the use of cryptocurrencies in the country without a complete ban.
But despite tight legalization, the Uzbek government has shown sympathy for cryptocurrencies, and has even offered some tax benefits to investors who do business with them.
But after one year, the President of Uzbekistan changed the country’s stance towards adopting cryptocurrencies and made the purchase of Bitcoin and any other digital currencies illegal.
Interestingly, the ban had its own exceptions as citizens were able to sell them but only if they could prove that the cryptocurrencies were bought legally in the beginning.
If not, any transfers will be considered illegal.
In January 2020, the Asian country launched “Uznex”, the first platform for regulated cryptocurrency trading in Uzbekistan.
However, the platform is not yet open to residents of Uzbekistan.
If the government of Uzbekistan lifted the ban on cryptocurrencies, it is possible that the local population would benefit from this platform.