Uzbekistan has restricted access to several foreign crypto exchanges, including Binance and FTX. The country wants crypto companies to obtain a license before operating.
Uzbekistan has restricted access to crypto exchanges that have not been approved, according to a statement. The exchanges include Binance and FTX, and the decree, on the whole, is a bid to ensure that companies in the industry play by the government’s rules.
The country is currently working on a legal framework for the crypto market, and one of the focuses is to ensure that activity is carried out “in the manner prescribed by legislative acts.” The statement reads,
“…it was identified that to date there is an intensification of activities of various electronic platforms that provide services to citizens of the Republic of Uzbekistan on trade and (or) exchange of crypto-assets without obtaining the required license for the activities of service providers on the territory of the country.”
It also states that unlicensed exchanges have no legal responsibility for crypto transactions, cannot guarantee the legitimacy of those transactions, and cannot ensure “the proper storage and protection of confidentiality of personal data of citizens.”
The country’s officials have asked citizens to be careful about using these platforms. The concerns are that their personal data could be leaked and could be exploited by bad actors. Besides Binance and FTX, Huobi and Bybit have also been blocked.
Other activities have also been affected by the decree. Crypto mining pools, exchanges, custodians, and “crypto shops” are all required to have a license in order to operate in the country. However, local exchange UZNEX continues to be accessible.
This is an unexpected turn for Uzbekistan, which has largely been friendly towards the crypto market. The country legalized crypto mining earlier this year, though it only allowed solar-powered crypto mining.
Countries the world over are cracking down on the centralized parts of the crypto market. Numerous crypto exchanges have become the target of authorities, as the latter seeks to impose some control over the burgeoning asset class.
From Europe to Asia, exchanges are now being compelled to comply with regulations or governmental requests. For example, many crypto exchanges have scrambled to get matters in order following the European Union discussions on crypto regulation.
The U.S. is also keeping a tab on crypto exchanges. One staff member from Senator Lummis’ office said that all crypto exchanges are being investigated by the SEC.
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