Key takeaways:
- The NAPP granted permission to two private banks in Uzbekistan to participate in cryptocurrency regulation’s virtual sandbox.
- The Uzbeki crypto card will link a bank account with access to a cryptocurrency exchange and an automated exchange mechanism.
The National Agency for Perspective Projects (NAPP) granted permission to Kapital Bank and Ravnaq Bank, two private banks in Uzbekistan, to take part in the virtual sandbox of cryptocurrency regulation. Plastic crypto cards powered by Mastercard will be distributed by the banks.
On August 14, the NAPP announced that Ravnaq Bank had been given permission to take part in its pilot program. The Agency has previously stated in May 2023 that Kapital Bank would also issue its crypto card.
According to the release, the Uzbeki crypto card, known as UzNEX, will link a bank account with access to a cryptocurrency exchange and an automated exchange mechanism. One of the most widely used payment systems in the world, Mastercard, will support the card.
The end of December 2023 is the current timetable for the final client rollouts of the crypto cards from both banks. Two of the three registered players in the national digital sandbox are still Kapital Bank and Ravnaq.
The offering of crypto services is only permitted by authorized cryptocurrency enterprises as of 2023, according to the Uzbek government. In November 2022, the first licenses were given to regional cryptocurrency businesses. Prior to that, Uzbekistan imposed access restrictions on a number of significant global cryptocurrency exchanges, including Binance, FTX, and Huobi, over suspicions of illegal behavior.
The nation’s regulatory framework for cryptocurrencies was established by a presidential decree in 2022, the same year that the NAPP was established to regulate the market for digital assets. In-depth legal information about Bitcoin mining operations in Uzbekistan was also included in the ordinance.
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