Bottom Article Ad

Uzbekistan Greenlights Crypto Card Issuance

The National Agency for Perspective Projects (NAPP) has given the go-ahead to Kapital Bank and Ravnaq Bank, two private banks based in Uzbekistan, to participate in the regulatory sandbox for cryptocurrencies. As per the report, these banks will link a bank account with access to a crypto exchange and an automated exchange system to plastic crypto cards (branded as UzNEX).

These crypto cards will be backed by the prominent payment provider Mastercard. Both banks are aiming to launch their crypto cards for general customers by the end of December 2023.

Starting from 2023, the Uzbekistan government has prohibited unlicensed entities from providing cryptocurrency services. In November 2022, the first licenses were issued to regional cryptocurrency businesses. Prior to that, Uzbekistan had imposed restrictions on various major international cryptocurrency exchanges.

The country's regulatory approach toward cryptocurrencies began with a presidential decree in 2022, which led to the establishment of NAPP to oversee the digital assets industry. This decree also laid out comprehensive legal guidelines regarding cryptocurrency mining operations within Uzbekistan.

Kapital Bank and Ravnaq Bank are among the three registered participants in the Special Regime. The approval for Ravnaq Bank's participation in the pilot program was announced on August 14, 2023.

According to the announcement, "The participant of the special regime will test the solution for integrating the automated banking system, the information system of the crypto-exchange, the processing center of the bank and the MasterCard international payment system."

Earlier in May 2023, the Agency had confirmed that Kapital Bank would also be issuing its own crypto card.

This move allowing banks to issue crypto cards marks a positive stride toward the wider acceptance of cryptocurrencies in Uzbekistan.

Post a Comment