The government of Uzbekistan has reportedly barred its citizens from purchasing cryptocurrencies.
According to local news outlet Novosti Uzbekistana on Dec. 25, the National Project Management Agency has banned citizens from purchasing crypto, even on established exchanges.
The decision comes as a surprise to many, as the country has previously displayed a relatively lenient stance toward digital currencies.
In September 2018, the country's government signed a memorandum of understanding to regulate and establish licensing for crypto exchanges, mining operations and initial coin offerings.
While the new regulation bars citizens from acquiring or selling cryptocurrencies, it gives some limited trading permissions to current cryptocurrency holders.
Holders that are citizens of Uzbekistan can sell their current investments on two licensed exchanges after undergoing Know Your Customer procedures, ostensibly to avoid the possibility of money laundering.
Any crypto assets whose origin cannot be proved are illegal to transfer or own in the country.
A report from Finance Magnates notes that the law could prove ineffective, given that Uzbeks could use a virtual private network - or VPN - to bypass the ban and access foreign cryptocurrency trading platforms.
Some officials in India have sought an outright ban on all digital assets.
Russian financial regulators are allegedly preparing a ban on the use of cryptocurrencies for goods and services.
Uzbekistan Bans Citizens From Buying Cryptocurrencies
gepubliceerd op Dec 25, 2019
by Cointele | gepubliceerd op Coinage
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