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The government of Uzbekistan has signed a decree on the regulatory framework of the cryptocurrency industry within its jurisdiction.

According to the decree signed by the nation’s head of state, Shavkat Mirziyoyev, the goal is to improve digital technologies, foster a favorable entrepreneurial environment, and boost the legislation in the sector.

The document revealed that the National Agency for Project Management, under the president, has become the National Agency for Perspective Projects (NAPP). That said, the NAPP would receive the mandate to regulate the crypto space in Uzbekistan. The organization will implement the state policy in the crypto space in the country and ensure investor protection.

The NAPP Will also roll out plans to introduce blockchain technologies to the public sector and combat illegal practices carried out through the use of crypto, like money laundering, terrorism financing, and weapons proliferation.

Uzbekistan Citizens and Businesses to Gain Unfettered Access to Cryptocurrency from 2023

The official decree recognizes crypto assets as property rights that represent a collection of digital records in a distributed ledger system with value and ownership. From January 1, 2023, Uzbekistan citizens and entities would have the option to trade cryptocurrencies freely through authorized crypto service providers.

The decree also listed the entities that fell under the legislation category, including digital exchanges, mining pools, cryptocurrency depositories, and crypto stores. However, these entities first have to register as a local businesses in Uzbekistan and obtain licenses or mining certificates from government authorities.

Uzbekistan originally legalized crypto trading in 2018 but made a Uturn in late 2019, banning residents from buying cryptocurrency, leaving them with only the option to sell. However, by November 2021, the government allowed citizens to trade crypto assets for national currency on only licensed domestic crypto trading platforms.