Uzbek presidential agency proposes legalizing domestic crypto trading

Uzbekistan wants to lift its ban on cryptocurrency purchases after barring residents from buying crypto in 2019.

A major governmental agency in Uzbekistan seems to be rethinking its stance on cryptocurrencies.

The National Agency for Project Management under the President of the Republic of Uzbekistan, or NAFT, issued an official document proposing several amendments to licensing procedures for crypto trading.

NAFT proposed to officially allow local residents to conduct “all types of crypto exchange trades involving crypto assets and tokens in exchange for the national currency and the foreign currency.” The authority stressed that crypto investors would trade and invest at their own risk.

The proposal also aims to establish processes for the registration, issuance and circulation of digital assets, authorizing licensed crypto companies in Uzbekistan to issue their own tokens. According to official records, the proposed amendments are open to discussion until May 14, 2021.

The latest news shows an apparent change of heart toward cryptocurrencies at the NAFT. In late 2019, the agency banned the country’s residents from purchasing cryptocurrencies like Bitcoin (BTC) . Despite barring crypto purchases, the authority reportedly still allows locals to sell their crypto holdings.

In January 2020, Uzbekistan debuted its first regulated cryptocurrency exchange, Uznex, which is only open to non-residents. The platform was launched by Kobea Group, a technology company from South Korea acting as a tech adviser to the government of Uzbekistan.