Uzbekistan Introduces New Regulatory Framework for Crypto Miners

CryptoMode Uzbekistan NAPP Crypto Mining

Uzbekistan’s essential body overseeing cryptocurrency, the National Agency for Prospective Projects (NAPP), is on the brink of a significant policy update. Sources close to Vyacheslav Pak, NAPP’s First Deputy Director, hint at an impending framework dedicated to crypto mining and token issuance investments.

Responsibilities of NAPP

With a specialized team of 45 members, NAPP’s primary duty is to license firms operating within the crypto domain. This framework began in 2018 when a government directive laid the foundation for controlling Uzbekistan’s blossoming crypto mining sector and market.

Recent announcements stress NAPP’s ongoing efforts to devise guidelines. These encompass registering crypto miners and initiating mining pools. The agency’s statement is, “NAPP shall regulate the licensing of crypto-asset circulation service providers. Moreover, mining’s incorporation at the legislative level is imminent.”

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NAPP’s drive goes beyond mere regulations. Pak emphasizes the agency’s mission to back entrepreneurs eyeing token issuance to muster capital. He accentuates the agency’s sincere dedication to legislative endeavors. Among these are codifying the current licensing structure and re-assessing mining terms. An intriguing focus? Broadening the permissible alternative energy sources palette.

A Robust Inter-Agency Collaboration in Uzbekistan

NAPP stands out as a formidable inter-agency governmental entity. It flawlessly complements mandates from the Central Bank and various law enforcement bodies. Pak accentuates NAPP’s prowess in spotting potentially suspicious transactions linked to illegitimate crypto actions. Integral to its operations is a partnership with Uzbekistan’s financial intelligence and the Ministry of Internal Affairs.

Earlier in the month, a notable move surfaced. NAPP green-lighted two banks for inclusion in the national regulatory digital sandbox. Addressing this sandbox, Pak reveals the current trio of participants: United Integrator Uzinfocom LLC, Kapitalbank JSC, and Ravnak Bank JSC.

To date, NAPP’s licensing achievements comprise one crypto exchange and nine other trading platforms. Interestingly, conversations between the agency and global powerhouses like Binance, Huobi, and Bybit have sparked interest. The objective? Potentially establishing footprints in Uzbekistan.

Uzbekistan is poised to make significant strides in the crypto landscape with these impending developments.

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