Uzbekistan Demands Fine from Binance for Operating Without a License
The National Agency for Prospective Projects (NAPP) of Uzbekistan plans to take legal action against Binance, an international crypto exchange, for operating in the country without a license. The agency’s deputy director, Vyacheslav Pak, stated that they will demand a fine through court proceedings.
Despite being fined 102 million soms in January by NAPP, Binance has refused to pay. As a result, the agency will seek to recover the amount through the court system. The court’s decision will be sent to the jurisdiction where Binance is registered.
“Naturally, as we expected, they refused to pay. Therefore, following the legislation of the Republic of Uzbekistan, we will submit a corresponding claim to the court, and a decision will be made.”
Vyacheslav Pak, NAPP deputy director
NAPP will send the court decisions through official channels to ensure their execution in Binance’s registered jurisdiction. It is important for Binance to obtain the necessary licensing in order to continue operating in Uzbekistan.
Strict Regulations for Cryptocurrency Transactions in Uzbekistan
In Uzbekistan, the sale of cryptocurrency is only permitted through licensed crypto exchanges regulated by NAPP. Additionally, electronic systems for cryptocurrency exchange trading must be hosted on servers within the country. Starting from January 1, 2023, individuals and businesses in Uzbekistan can only engage in transactions involving crypto assets through national service providers.
Hot Take: Uzbekistan Cracks Down on Unlicensed Crypto Operations
Uzbekistan is taking firm action against unlicensed cryptocurrency operations by demanding fines from Binance for operating without proper authorization. The National Agency for Prospective Projects has fined Binance and plans to recover the amount through court proceedings. This move highlights Uzbekistan’s commitment to regulating the crypto industry and ensuring compliance with licensing requirements. By imposing strict regulations, the country aims to protect its citizens and maintain control over cryptocurrency transactions. This case serves as a reminder to crypto exchanges to adhere to local laws and obtain the necessary licenses when operating in different jurisdictions.
By
By
By
By