Progressing steadfastly within its digital currency regulatory sandbox, Uzbekistan is forging ahead with the exploration of digital currency cards designed for consumer use.
According to an official statement issued by the National Agency for Perspective Projects (NAPP) of the nation, two commercial banks have received formal approvals to issue plastic digital asset cards.
Kapital Bank and Ravnaq Bank have been unveiled as pivotal participants in the pilot initiative centered around digital asset cards, designated as UzNEX. These cards will be underpinned by the technology prowess of renowned global financial services provider, Mastercard (NASDAQ: MA), facilitating seamless fiat transactions to and from selected digital currency platforms.
The pilot program will witness both commercial banks intricately evaluate the harmonious integration of digital asset cards within their existing banking systems, coupled with Mastercard’s proficient payment infrastructure. NAPP’s strategic objective encompasses the imminent trial deployment of this offering by both banks prior to the culmination of the current year, with a view to enhancing the landscape of digital currency services throughout the nation.
“The participants 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,” outlined NAPP’s formal declaration.
Kapital Bank and Ravnaq Bank were duly selected to partake in the “Special Regulatory Sandbox Regime” by NAPP. The solitary entity joining them in this pilot endeavor is state-owned technological entity, Uzinfocom, entrusted with the pioneering exploration of non-fungible token (NFT) certificates for ” .UZ” domain names.
Uzinfocom’s NFT-focused research initiative was inaugurated in late April and successfully launched in May, marking a significant achievement.
After enjoying years of relative latitude, Uzbekistan’s regulatory authorities have pivoted towards increased scrutiny of digital asset service providers within the nation. Notable industry titans like Binance, Bybit, Huobi, and the now-defunct FTX found themselves in the initial throes of this regulatory clampdown, prompting swift dialogues with Uzbekistani authorities.
This heightened regulatory fervor extended to encompass cryptocurrency miners in the country, as an offensive against illicit mining operations ensued, bolstered by the formation of a specialized unit to combat digital asset-related offenses.
Further Tautening of Regulations
In October 2022, the nation issued a directive mandating digital currency exchanges to remit $11,000 on a monthly basis to bolster the national budget. Individual miners were not exempt, with a monthly fee of $270 attributed to their operations. Mining pools and custody service providers were also subject to these fiscal obligations, amounting to $2,700 and $135 respectively.
The directive stipulated that “Failure to pay the fee within one month constitutes grounds for suspension of the license… If the company does not pay the fee for two months within a year, the license may be canceled.”
Under the aegis of this reinvigorated digital currency framework, enterprises are anticipated to seek operational licensure from NAPP, or risk punitive actions for venturing beyond the confines of established regulations.
