Thu, November 14

Uzbekistan Progresses Testing Crypto Regulations in Digital Sandbox

Uzbekistan Progresses Testing Crypto Regulations in Digital Sandbox Bitcoin News
  • Mastercard-powered crypto cards will be issued by the participating banks.
  • There are now three companies registered to engage in the national digital sandbox.

The National Agency for Prospective Projects (NAPP) in Uzbekistan has granted permission to two private banks, Kapital Bank and Ravnaq Bank, to test crypto regulations in a “digital sandbox.” Moreover, Mastercard-powered crypto cards will be issued by the banks.

The NAPP announced on August 14 that Ravnaq Bank has been given permission to take part in the pilot program. In May of 2023, the Agency announced that Kapital Bank will be issuing its own cryptocurrency card.

Major Crypto Push

The Uzbeki crypto card, which the announcement calls UzNEX, would apparently combine a bank account with access to a cryptocurrency exchange and an automatic exchange mechanism. Mastercard, a global leader in electronic payment processing, will back the card.

Both banks have set the end of this year as the target date for completing client rollouts of crypto cards. There are now three companies registered to engage in the national digital sandbox. With two of them being Kapital Bank and Ravnaq.

Beginning in 2023, only crypto businesses that have obtained official approval may provide their services in Uzbekistan. In November of 2022, the first licenses were issued to crypto companies in the region. Prior to that, Uzbekistan blocked access to many major international cryptocurrency exchanges on suspicion that they were engaging in illegal activities. These exchanges included Binance, FTX, and Huobi.

The National Agency for Prospective Projects (NAPP) was established in 2022 by presidential order to regulate the country’s cryptocurrency sector. The directive also laid out the legal framework in its entirety as it pertains to the mining of cryptocurrencies in Uzbekistan.

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A diploma graduate who is passionate about digital currency and loves writing. He loves the concept of crypto and keeps himself up to date with the latest development and news of the crypto world.