Uzbekistan granted first-ever "crypto shop" licenses

Uzbekistan officially allowed the first two companies to operate as crypto trading platforms. The new legal framework, due to enter into force next year, permits citizens and firms to transact only with licensed crypto exchanges.


The National Agency of Perspective Projects of Uzbekistan (NAPP), an institution overseeing the crypto industry, for the first time issued licenses to local cryptocurrency platforms. "Crypto Trade NET" LLC and "Crypto Market" LLC [are] now considered as licensed crypto-shops and intended to provide easier access for citizens to do operations (buy or sell) with crypto assets." reads the press announcement.

The release underlines that both providers became the first licensed crypto-trading platforms (or crypto-shops in NAPP's vernacular) in Central Asia and in the Commonwealth of Independent States (CIS), which covers most of the post-Soviet region.

Uzbekistan has been pushing forward with cryptocurrency regulations to attract foreign investors and tidy up the local market. The country legalized crypto trading in 2018. Earlier this year, the government introduced new rules to combine boosting renewable energy with attracting crypto miners. The companies are welcome to establish their farms as long as their activity is powered, for the most part, by the sun energy.

However, recent crypto-related regulations include the law that requires crypto exchanges to be licensed in Uzbekistan. Starting next year, local citizens and companies won't be permitted to transact with non-licensed platforms. The funny thing is, so far only one company has managed to secure the license to operate on Uzbek soil – South Korea's Kobea Group-owned UZNEX.