New Restrictions on International Crypto Exchanges

Uzbekistan has decided to play a critical game of Monopoly by restricting access to a handful of major international crypto exchanges. This decision comes after accusations of unlicensed activity were thrown around like confetti at a parade. The National Agency of Perspective Projects (NAPP) announced this move on August 10, making it clear that certain platforms were trading crypto-assets without the necessary licenses, which is a big no-no according to Uzbekistan’s legal framework.

The Licensing Maze

In their announcement, the NAPP hinted that foreign exchanges can still join the Monopoly board—if they play by the rules. The exchanges will need to obtain a license and set up servers within Uzbekistan’s borders because, apparently, geographical presence is everything in the crypto world.

Moreover, the NAPP stressed that until these exchanges follow the protocol, they bear no legal responsibility for the transactions involving crypto-assets. So, if you’ve been trading on a non-compliant exchange, you might want to dig out that ‘Get Out of Jail Free’ card.

Background on Crypto Regulation in Uzbekistan

This new initiative isn’t just a random power play; it’s a part of broader regulatory efforts initiated back in 2018. The presidential decree titled “On measures to develop the digital economy and the sphere of crypto-assets turnover in the Republic of Uzbekistan” set the groundwork for a more structured approach to cryptocurrencies.

Fast forward to April 2022, and the NAPP became the big boss of crypto regulations in Uzbekistan. President Shavkat Mirziyoyev rolled up his sleeves and established a particular framework dedicated to crypto, with the hopes of moderating and controlling the space.

Solar-Powered Mining? You Bet!

But wait, there’s more! In June, the NAPP announced a quirky requirement: only companies using solar energy would be permitted to mine cryptocurrencies such as Bitcoin. Yes, you read it right. Mother Earth is getting involved in crypto mining now! Any mining operator wanting to play in Uzebekistan will not only need a certificate but also to register in the national registry of crypto mining companies. Talk about going green!

Impact on Crypto Investors

Now, the real question on everyone’s mind is: What does this mean for crypto investors in Uzbekistan? Major international exchanges like Binance, FTX, and Huobi were the go-to platforms for many Uzbeki crypto enthusiasts. With access to these platforms restricted, local investors may find themselves with fewer options or turning to more obscure exchanges—definitely not the thrill of a treasure hunt you’re looking for!

As Cointelegraph attempts to contact these global exchanges for their take on this situation, it remains to be seen how this story will unfold. Will Uzbeki investors have to adapt or wait for a friendly game of regulatory chess?