A goal that is emphasized by Uzbekistan's market watchdog is the country's intention to facilitate the adoption of crypto players that are focused on compliance. Trading licenses were issued to Crypto Market LLC and Crypto Trade Net LLC by the National Agency for Perspective Projects (NAPP). Both companies provide local services in their respective communities. The permission was formally announced by NAPP on November 17, and the Uzbek regulator emphasized the necessity of compliance-oriented crypto service providing during the announcement.

Participation of the Government in Action

The NAPP is the key regulator for any operations in Central Asia involving cryptocurrencies. The president of the agency, when breaking the news of the clearance to the two service providers situated in Tashkent, commended the pioneering role that the Uzbekistan Republic played in establishing a well-formed framework surrounding the circulation of cryptocurrencies.

The agency hailed the presidential decrees and framework resolutions as an important milestone on the path toward making the digital economy more accessible. In particular, the agency made reference to the directive that had been passed by President Shavkat Mirziyoyev at the beginning of 2022 in order to enhance the regulatory framework governing digital assets, cryptocurrency exchanges, and mining. The regulation specified the monthly costs that miners and other crypto actors are required to pay, in addition to imposing new registration procedures for miners.

Delimited Area for Cryptocurrency Trading

Uzbekistan has designated the space for cryptocurrency exchanges with stringent observation in order to protect the Central Asian nation from a contagious breakdown similar to what was seen following the collapse of Three Arrows Capital (3AC) and FTX Group. As a result of the ban on alternative exchange platforms operating within the nation, Uznex, which is owned and operated by the government, became the only supplier of cryptocurrency exchange services.

The NAPP highlighted the fact that the two local platforms had been granted licenses to operate as cryptocurrency stores, which will provide easier access to cryptocurrency assets in both incoming and outgoing transactions. The official from NAPP issued a call to action to the people of Uzbekistan, urging them to remain vigilant and steer clear of dishonest internet trading platforms. The illuminating comment was directed toward the people of Uzbekistan in an effort to dissuade them from falling prey to a scheme comparable to FTX, which failed earlier this month, resulting in the loss of billions of dollars in investments.

Access to Cryptocurrency Exchanges Is Restricted

The licensing of two cryptocurrency shops comes at a convenient time, given that NAPP in August restricted access to platforms operated by crypto traders who were owned by foreign entities. The protectionist strategy led to the downfall of Binance, which was the largest exchange in the world.

In addition, NAPP cautioned its residents against placing their trust in trading platforms that are operating illegally and without a valid regulatory license. It is possible that the remark was in reference to the decision made by NAPP to unblock Bestchange-ru because of its widespread popularity in exchange aggregation throughout the countries that formerly made up the Soviet Union.