Uzbekistan bans its citizens from purchasing cryptocurrencies

Uzbekistan has allegedly banned its citizens from buying cryptocurrencies. According to local news media Novosti Uzbekistana, it was the National Project Management Agency that has barred its citizens from buying digital coins, even ones on established exchanges.

The news comes out as a shock to many, especially since Uzbekistan was thought of “crypto friendly” place. For example, in late September 2018, the government of Uzbekistan signed an MoU to create and regulate the licensing processes for cryptocurrency exchanges, ICOs and crypto mining operations.

It was again in September 2018, when the President of the country, Mr. Shavkat Mirziyoyev, launched the state blockchain development fund dubbed the “Digital Trust”. There was also a signed decree on the integration and development of blockchain technology in Uzbekistan’s public administration.

The new rules that Uzbekistan is introducing does not allow from purchasing or selling cryptocurrencies, but it does allow limited trading permission to current holders of cryptocurrencies. Those holders (assumed to be Uzbekistan citizens) can sell their holdings on the 2 licensed crypto exchanges with full KYC procedures.

One problem with the new regulation is that citizens can bypass the crypto ban by using a VPN (virtual private network) and can trade their cryptocurrencies on trading platforms freely. The information comes from a report from Finance Magnates.

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