Uzbekistan warns citizens against using unauthorized cryptocurrency exchanges – Times of India


The Uzbekistan government published and blacklisted six unauthorized cryptocurrency exchanges and warned citizens from using such exchanges, according to a report. The National Agency of Project Management under the President of Uzbekistan detected an increased number of unofficial crypto exchanges during a monitoring campaign. These trading platforms do not have their offices in the country and are registered in other jurisdictions and their servers are located abroad.

They offer transactions and trading in crypto assets, and collect personal information of Uzbek citizens. The official announcement published on the Uzbek press website cautioned citizens against such platforms as they don’t bear any responsibility for cryptocurrency transactions among various parties. The unlicensed platforms do not ensure proper storage and confidentiality of personal data of consumers either. Their legitimacy can’t be guaranteed, the official notice emphasised and citizens should stay informed to protect themselves from frauds.

Similar services are also being offered through Telegram bots and groups too. The providers of such platforms mostly remain anonymous and can quickly delete the traces when suspected to be caught. Uzbekistan got its first-ever licensed crypto exchange Uznex in January 2020, operated by Korean company, Kobea group.The platform allows only selling of cryptocurrencies within the regulatory framework.

Uzbekistan legalized crypto trading in 2018, but in 2019 Tashkent banned citizens from buying cryptocurrency although selling was allowed. In 2020, the Uzbek government proposed a slew of reforms to encourage crypto activities in the country. It proposed to set up a national mining pool and establish a licensed cryptocurrency exchange where miners could sell their cryptos. Further the government proposed to enforce crypto tax exemptions and create a blockchain valley. In September, 2021 the deputy chairman of Uzbekistan Central Bank had stressed the importance of the Central bank digital currency(CBDC) which is backed by the bank’s assets unlike Bitcoins.

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