Earlier, looking at the increasing concerns of using cryptocurrency in the geographical boundaries of Uzbekistan, the government banned its movement. However, recently, the government changed the rules. To allow people to trade cryptocurrencies on licensed platforms, the government decided to provide a green flag to people.
Before this, people are only capable of selling their digital assets using local and global platforms. Now, the scenario is different. The new provisions will regulate the issuance of tokens and their listing under some exchange licensed by the government.
As a result, global cryptocurrency trading can seriously posit a threat to the economy of some developing nations like Uzbekistan. However, the technology used in trading these cryptocurrencies can still wholly transform the financial system of any country in the world.
Uzbekistan is one of the poorest nations that have taken a step towards modern cryptocurrency trading technology. It has decided to loosen the earlier restrictions on the domestic trade of cryptocurrencies like bitcoin. As a result, the residents of Pakistan will now trade in cryptocurrencies on the platforms that the government licenses. According to the reports of four clubs, the residents of Uzbekistan will now be able to purchase, sell and exchange cryptocurrencies for the national Fiat currency. The NAPM director gave this order. Apart from this, the nonresidents of Uzbekistan will also be able to exchange foreign fiat currencies with cryptocurrencies.
Activities in the Past
Uzbekistan is one among those nations that look at the potential of cryptocurrencies for providing support to the country’s financial system. It decided to allow legalized cryptocurrency trading banks in 2018, but the government’s mind changed towards 2019. It decided to ban the residents of Uzbekistan from purchasing any cryptocurrency existing globally or locally. However, people could sell cryptocurrencies for their profits but cannot purchase them, says https://cfd-trader.io/.
The regulatory bodies of Uzbekistan explained that by providing restrictions on the purchasing of cryptocurrencies, they want to teach people the right approach to investing in digital coins. Before the action taken by the government, people were making irrational and unbalanced trade in cryptocurrencies. Therefore, the main reason behind imposing strict rules and regulations on purchasing cryptocurrencies was to teach people how to use coins in the best way possible to make a profit and still not deteriorate financial security.
What does NAPM say?
The NAPM was not entirely in favor of cryptocurrency trading. Therefore, it warned the residents of Uzbekistan that they should not trade in cryptocurrencies on unregistered and unlicensed platforms. It was also necessary for people to be aware of the government’s measures to develop the economy to make it digital in the Republic of Uzbekistan.
Also, the concerns were outed on the public platforms because the government wanted to remind people that licensing and notification procedures are very important. Therefore, cryptocurrency exchange operations face licensing. The NAPM also restricted the local exchanges to list unsecured tokens to remind people that the licensing and legalization of cryptocurrency trading platforms are essential. ACCORDING TO THE REGULATIONS, the NAPM also stated that cryptocurrencies need to be secured by the tangible property to attract investment.
Current situation
The authorities of Uzbekistan were never against the cryptocurrencies and crypto space. In January 2020, the country was also ready to establish a whole national cryptocurrency mining pool to create a new world for digital assets in Uzbekistan. Also, they promoted some critical actions like cryptocurrency tax exemptions and wanted to establish the country’s exchange.UZNEX, a cryptocurrency trading platform designed by the South Korean company, was launched by the government in the same month for the residents of Uzbekistan.
Now, Uzbekistan has allowed people to trade in cryptocurrency. Earlier, only selling cryptocurrencies were allowed at local trading platforms, but they can now purchase and sell simultaneously. However, when it comes to exchanging goods and services for cryptocurrencies, it is still prohibited.
The Central Asian country, Uzbekistan, is still not prepared to make cryptocurrency if financial coin under the government. Also, by a statement given in September 2021, the central bank of Uzbekistan made it clear that bitcoin is never going to be a legal tender in the country. Some of the Uzbekistan central bank officials also said that this country’s regulation would never change.