Uzbekistan Bans Citizens from Acquiring Cryptocurrencies

  • The government of Uzbekistan has passed an order banning citizens from acquiring cryptocurrencies.
  • Traders will be able to sell their crypto on two regulated exchanges once undergoing an identification process. 

The government of Uzbekistan has banned citizens from purchasing cryptocurrencies, even through established crypto exchanges. 

According to a report by local news outlet Novosti Uzbekistana, the National Agency for Project Management has passed an order barring citizens from acquiring cryptocurrency, including the purchase from crypto exchanges. The report claims the order was previously published by the Uzbekistan government and officially went into effect on Dec. 6, 2019. 

The report continues, 

Already, many citizens of the republic are experiencing difficulties in transactions with bitcoin and other tokens. In addition, many experts believe that the Uzbek authorities thus impede the country's technological development.

According to the update, traders will be allowed to sell their cryptocurrency on two licensed platforms within the country. However, traders will be required to undergo a detailed identification procedure beforehand, in an effort to reduce the risks of money laundering through digital assets. 

While the Uzbekistan government is taking a negative stance towards cryptocurrency, the country reportedly has an interest in developing blockchain technologies. According to the news outlet, authorities have reiterated that blockchain may be used to increase the transparency of the economy and government. 

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