A government agency in Uzbekistan has published a list of unauthorized cryptocurrency exchanges that it has advised residents of the country to avoid. Officials have warned that the exchanges collect personal data and take no responsibility for cryptocurrency transactions.
Authorities on the list of “unofficial” cryptocurrency exchanges in Uzbekistan
The National Project Management Agency headed by the President of Uzbekistan has identified a number of online platforms that provide cryptocurrency trading services without permission. During an online monitoring campaign, the authority recorded an increase in the activities of “unofficial” digital asset exchanges.
The entities behind it offer citizens of Uzbekistan the option of buying, selling or trading crypto assets without having an office in the country. The agency said in a notice posted on its website that they are usually registered in other jurisdictions and their servers are located abroad, but at the same time they collect personal information from residents of the Central Asian Republic.
Half a dozen cryptocurrency exchange sites targeting residents of Uzbekistan have been blacklisted: webmoneytashkent.com, wmztashkent.com, wm-torg.com, uzwmz.com, blockchainuz.com and bitcointashkent.com. Similar services are offered through Telegram bots and groups as well. The organizer noted that their providers often remain completely anonymous and can quickly delete the channel.
Officials emphasized that these types of platforms do not bear any legal responsibility for crypto transactions between various parties and cannot guarantee their legality. Furthermore, they cannot guarantee the proper storage of personal data or the maintenance of confidentiality. The advertisement states:
The agency urges citizens to be as vigilant and vigilant as possible and not to use the services of such platforms, including so as not to fall victim to fraud.
Uzbekistan legalized cryptocurrency trading in 2018, but in December 2019, the authorities in Tashkent effectively banned residents from buying cryptocurrencies even though they were allowed to sell. The National Project Management Agency has now reminded the public that in accordance with the Presidential Decree “On Measures for the Development of the Digital Economy in the Republic of Uzbekistan” and the Country Law “On Licensing and Notification Procedures”, the creation of cryptocurrency exchanges is subject to licensing.
The government has tried to encourage some crypto activities. In January 2020, Tashkent unveiled a plan to create a national mining complex and the initiative was presented as a priority. The country also said it would set up a licensed cryptocurrency exchange where miners would be able to sell their coins, and promised to create a blockchain valley as well as offering tax breaks for cryptocurrency. Uznex, a regulated trading platform operated by South Korean company Kobea Group, was launched later that month.
However, in September of this year, a high-ranking central bank official was quoted as saying that cryptocurrencies like bitcoin would not be recognized as legal tender. Speaking to local media, Deputy Head of the Central Bank of the Republic of Uzbekistan (CBU) Behzod Hamrayev noted that unlike cryptocurrencies, the national funds are backed by the bank’s assets. He also expressed his opinion that Bitcoin will not be equal to “global currencies” such as the dollar, the euro, the yen and the ruble.
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