The National Agency for Perspective Projects (NAPP) has granted approval to two private banks in Uzbekistan for crypto card issuance. These banks are Kapital Bank and Ravnaq Bank. Notably, this pivotal development allows these banks to actively participate in the digital sandbox framework for crypto regulation.
The announcement by the NAPP heralded the official start for Ravnaq Bank’s participation in the pilot program. Meanwhile, an earlier confirmation in May 2023 revealed that Kapital Bank was set to introduce its own crypto card.
Introducing UzNEX
Uzbekistan’s pioneering crypto card, aptly named UzNEX, aims to seamlessly merge traditional banking services with the dynamic realm of cryptocurrency. This innovative card provides users with unparalleled access to a crypto exchange and a fully automated exchange mechanism. The backbone of UzNEX’s seamless functionality is the globally renowned payment system, Mastercard.
Both Kapital Bank and Ravnaq Bank are diligently working towards the end goal. This is the final rollout of their crypto cards to eager customers. The target date for this transformative release is set for the conclusion of December 2023. Notably, these two banks proudly stand as two out of the three registered participants within Uzbekistan’s ambitious national digital sandbox initiative.
Uzbekistan’s Regulatory Landscape
The year 2023 marks a significant shift in Uzbekistan’s crypto landscape. Notably, the government has instituted a stringent requirement for crypto services to be exclusively provided by licensed cryptocurrency firms. This resolute stance was solidified in November 2022 when the first licenses were awarded to local crypto entities.
Preceding this, Uzbekistan had taken measures to curtail access to several major international crypto exchanges. These include prominent names like Binance, FTX, and Huobi. The nation took this action because of allegations of unauthorized operations within the country.
A Presidential Decree Paving the Way
Additionally, the impetus for Uzbekistan’s forward-thinking regulatory framework in the crypto sphere came via a groundbreaking presidential decree in 2022. The establishment of the NAPP was a pivotal outcome of this decree, symbolizing the government’s commitment to overseeing and nurturing the digital assets industry.
Furthermore, this decree provided a comprehensive legal framework pertaining to cryptocurrency mining operations within Uzbekistan.
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