Uzbekistan’s financial landscape is undergoing a transformative shift as two prominent private banks, Kapital Bank and Ravnaq Bank, have received the green light from the National Agency for Perspective Projects (NAPP) to embark on an innovative journey into the realm of digital currency. The NAPP’s authorization allows the banks to participate in the digital sandbox of crypto regulation, signaling a significant step towards embracing the future of financial technology.
In an official announcement on August 14, the NAPP revealed its formal approval for Ravnaq Bank’s participation in the highly anticipated pilot program. This development comes on the heels of a preceding announcement made in May 2023, confirming Kapital Bank’s impending issuance of its own crypto card. Both banks are set to issue plastic crypto cards, bearing the insignia of global financial giant Mastercard, thereby harnessing the power of established payment systems to facilitate the transition into the crypto space.
The innovative crypto cards, to be aptly named UzNEX, are poised to revolutionize the banking landscape in Uzbekistan. Combining traditional banking functionalities with access to a cutting-edge crypto exchange and an automated exchange mechanism, UzNEX promises to be a groundbreaking financial instrument that caters to the evolving needs of modern consumers.
Mastercard’s support adds a layer of credibility and convenience to the project. As one of the world’s premier payment systems, Mastercard’s involvement provides a significant vote of confidence in the viability of the UzNEX crypto card, further cementing the initiative’s potential to reshape financial interactions on a global scale.
Uzbekistan Implements Stricter Regulations on Crypto Services
This recent development follows the granting of the first licenses to local crypto enterprises in November 2022. Prior to this, the Central Asian nation had imposed limitations on access to several prominent international cryptocurrency exchanges, including Binance, FTX, and Huobi, citing allegations of unauthorized activities.
The regulatory framework governing the crypto landscape in Uzbekistan was set into motion by a presidential decree in 2022, which led to the establishment of the National Agency for Cryptocurrency and Blockchain (NAPP). Tasked with overseeing the burgeoning digital assets industry, the NAPP was entrusted with the responsibility of ensuring compliance with regulatory guidelines and fostering a secure environment for crypto-related activities within the country.
This recent progression in regulatory stance marks a significant step forward in Uzbekistan’s approach to the world of cryptocurrencies. The governmental decree not only paved the way for the issuance of licenses to domestic crypto firms but also furnished a comprehensive legal framework that pertains to cryptocurrency mining operations within the nation’s borders.