The sequence in which crypto assets are issued and circulated in Uzbekistan has been decided by the agency in charge of overseeing the industry there. The major motivation behind the action is to create a system that would enable local businesses to raise finance using coins and tokens.
The Uzbekistan Government Aims to Control Investments in Crypto Assets
A new regulation on the processes for the issuance, registration, and release into circulation of crypto assets in the Central Asian country of Uzbekistan has been published by the National Agency of Perspective Projects (NAPP), which reports to the President of Uzbekistan.
The document outlines the fundamental legal concepts of crypto assets and distinguishes between the various categories. It outlines the conditions that must be met by cryptocurrency issuers, depositaries, and custodians and establishes their duties, including those pertaining to interactions with clients.
The authority also issued accounting requirements for the rights attached to them and those of their holders, as well as rules for the creation and upkeep of an electronic registry of crypto assets.
The issuance, registration, circulation, and storage of crypto assets will fall under the purview of crypto depositories. The NAPP noted that the nominal value of the coins must be expressed only in the national currency, the Uzbekistani som, and that issuers may use them or other electronic platforms.
The agency highlighted that it is against the law to provide insecure tokens. The names of the cryptos cannot contain the terms "state," "state-secured," "state-supported," "Uzbekistan," "Uzbek," "national," or "som." Also made clear by the regulator:
The main purpose of the adoption of this document is to create a new mechanism for business entities to attract investments and develop their activities by issuing and registering the issue of secured tokens.
The NAPP further cautioned against engaging in any illegal activity relating to the usage of services provided by companies without a license and the circulation of cryptocurrency assets in the nation. The same holds true for businesses engaged in cryptocurrency mining.
With the signing of multiple decrees and decisions by the National Agency of Perspective Projects, President Shavkat Mirziyoyev of Uzbekistan has taken steps to fully regulate the country's crypto industry. Two businesses have recently received licenses from the nation to offer exchange services.