Uzbekistan Initiates New Regulations: Bans Buying Bitcoin & Cryptocurrencies

Uzbekistan appears to be changing its stance towards cryptocurrency adoption as the President has made it illegal to purchase any, while citizens can actually sell them. Interestingly enough, this comes only a year after cryptocurrency usage was legalized.

Uzbekistan Bans Cryptocurrencies

According to a local report, the former Soviet republic is set to place a ban on cryptocurrency purchases within the borders of the country. It also states that investors owning digital assets can actually still sell them; however, in order do to so, the citizens would need to prove that they have previously acquired the assets legally. If they fail to do so, any transfers or sells will be illegal, due to the new amendment.

What may come as a surprise now is that Uzbekistan has been somewhat friendly towards cryptocurrencies in the past. Last year, the country made a move for potentially luring crypto exchanges by providing them with several different tax benefits. Those exchanges running within the country would not be subject to existing foreign currency regulations. Moreover, the report said that income from cryptocurrencies will not be taxed.

Political Situation in Uzbekistan

Protests and public discontent is a rare thing in Uzbekistan, due to the authoritarian’s way of operation. However, after President Mirziyoyev was elected a few years ago, the citizens began forming quiet online protests that grew to public ones in the fall of 2019.

The reason behind those protests appears somewhat unusual at first glance – the declining weather temperatures. But the citizens are claiming that this is just what put the on the street, as they cannot meet basic needs for electricity and natural gas.

Actions against the government reportedly began in the country’s least developed region, Nukus, as people blocked a road and burned car tires in a protest to demand the resumption of natural gas supply in their homes. Bakht city citizens followed after a major methane station was unexpectedly closed. Since those initial acts, Fergana and Ellikqala regions have also taken a stand on the streets.