Since the beginning of November, the National Agency of Perspective Projects (NAPP) has been working to make amendments to the crypto regulations.
The NAPP operates under the rule of the President of Uzbekistan and has recently introduced new regulations for cryptocurrencies.
New Regulations Governing Crypto
According to the reports, new regulations have been introduced to provide guidelines for certain aspects of cryptocurrencies.
These aspects include the registration and issuance of cryptocurrencies and the procedures to make it happen.
The new regulations also provide guidelines on the release and circulation of cryptocurrency assets. With the new guidelines in place, the crypto can be issued and circulated under a regulated environment.
Details of the Regulatory Document
The new document introduced for the regulations of cryptocurrencies in the country provides the cryptocurrency assets’ basic legal definitions.
The regulation also provides clearly details for the distinction between cryptocurrencies and their different types. It also provides guidelines on how cryptocurrency custodians, depositaries, and issuers must act.
They are required to fulfill certain requirements and perform checks provided in the guidelines, for the issuance of cryptocurrency assets.
In addition to the above, the document also provides clear instructions on how all crypto-related entities must deal with customers.
They have to build strong relations with the customers that are based on trust and loyalty. There should not be any misleading or false pieces of information given to the customers to attract them.
The document also reminds the crypto firms of their obligations and responsibilities as financial service providers. They also have to ensure that they protect the assets of the investors and provide them with security.
Approval for Electronic Register
The regulatory authority in Uzbekistan seems to have gone all out when it comes to the adoption and regulation of cryptocurrencies.
It has even approved and provided the rules that are to be respected by every firm wanting to establish electronic registers for cryptocurrencies.
The firms are not only responsible for the establishment but also the maintenance of these electronic registers.
They have to maintain account standards when it comes to keeping track of the investors’ investments and transactions. They will need to adhere to all the rights that the customers have available in accounting.
Special Instructions for Crypto Depositories
The regulation document stresses that cryptocurrency depositories are responsible for the storage, circulation, registration, and even the issuance of crypto assets.
The NAPP has made it clear that the issuers will be able to use the issued tokens through different kinds of electronic platforms. However, they must ensure that all the tokens are nationally fiat-denominated.
The NAPP has strictly prohibited the issuance of tokens that are unsecured. The document provides clear instructions that the assets with certain terms used in them are not to be issued at all and they are banned.
Purpose of New Regulations
The NAPP also issued a statement supporting their latest regulations on cryptocurrencies. The regulator has clarified that the adoption of the new crypto regulations is to start a new endeavor with crypto.
Over the years, they have realized that cryptocurrencies are here to stay and they will soon become an essential part of the global economy.
It is, therefore, important to act fast and adopt cryptocurrencies so their local citizens and businesses get used to them.
Their country will be able to achieve so much when it starts adopting cryptocurrencies and starts to learn from the industry.
The NAPP urged businesses in the country to widen their circles and accept cryptocurrencies if they feel that they will prove to be beneficial.
With the issuance and adoption of cryptocurrencies, Uzbekistan has become somewhat of a country that is close to El Salvador.
Over time, more countries would start adopting cryptocurrencies as legal securities and other kinds of investment assets. However, they will find that Uzbekistan had already climbed that ladder.