Wednesday, October 28, 2020

Citizens of Uzbekistan can no longer purchase cryptocurrency

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A few weeks ago, Uzbekistan’s National Agency for Project Management introduced new regulatory amendments. The new regulations came on December 6th, and its consequences are already being felt, as it pulled back the operability capacities regarding the purchase of digital currencies for individuals.

In other words, the citizens of Uzbekistan can no longer legally purchase digital currencies, even if they turn to licensed crypto exchanges within the country. Uzbekistan’s decision to take a step back and prevent crypto from spreading further within the country became a hot topic, as a result, leading to numerous discussions worldwide.

INVESTORS ARE ALLOWED TO SELL THEIR CRYPTO ASSETS

Fortunately, the agency has decided to let investors sell off their digital assets obtained before the introduction of the new ban. Crypto holders are still allowed to sell their coins on two registered platforms within the country — Forklog and Sputnik.

According to what is known so far, this seems to be the end of cryptocurrencies’ use as a legitimate payment method in Uzbekistan. Meanwhile, the exchanges will only accept requests from investors who are 18 years old or older, provided that they are verified and that they are not suspected of participating in illicit activities. This comes from concerns of Uzbekistan’s investors potentially participating in money laundering or terror financing.

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However, while the country was by no means a major crypto hub, the government’s strict and swift actions against crypto left a lot of crypto enthusiasts quite surprised. After all, Uzbekistan was not a haven for crypto and blockchain yet, but it was certainly on its way to becoming one.

UZBEKISTAN HAD PLANS FOR CRYPTO AND BLOCKCHAIN

Last year, Uzbekistan’s government legally accepted crypto trading, and allowed exchange licensing thanks to a presidential decree. It demonstrated how easy it could be to allow cryptocurrencies to start flowing into the country. The government’s actions from this period even indicated that it had plans to expand crypto operations in the country.

One example of this is the signing of a pact with the Korean Blockchain Business Association. The partnership was supposed to provide help to Uzbekistan in the execution of the Uzbekistan Revolution 4.0.

The project was highly anticipated, with a major focus on making the country’s blockchain network stronger. There were even plans of establishing a trading platform, a blockchain academy, and even Initial Coin Offerings (ICOs) were supposed to be legalized.

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Now, the country seems to have had a change of heart, and has decided to ban crypto purchases altogether. However, the government seems to believe that various foreign projects, investments, and entities might still come to Uzbekistan in the future.

Uzbekistan is also not the only one to suddenly turn against crypto. Bitcoinist  reported world’s biggest video platform, YouTube, recently started removing crypto-related videos from their website without any warning or reason.

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