The Republic of Uzbekistan Approves Second Participant Bank for Crypto Card Initiative
The Republic of Uzbekistan has recently approved the participation of another private bank in its national crypto card project. The country’s digital asset regulatory body, the National Agency of Perspective Projects (NAPP), announced the registration of JSV “Ravnaq-bank” as a member of the Special Regulatory Sandbox Regime. Here are the key points:
– The Special Regulatory Sandbox Regime empowers certain entities in the Uzbekistan crypto space to offer special services.
– Ravnaq-bank is now authorized to actively participate in the pilot of the nation’s crypto card project.
– The bank will develop and implement a virtual bank card product named “CRYPTO CARD – UzNEX.”
– The card will allow customers to add funds to their parent account by selling off crypto assets in a digital wallet on a partner crypto exchange platform.
– Ravnaq-bank 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 payment system.
This approval comes after Kapitalbank was approved as the first participant bank in May 2023. Both banks are expected to begin the full project launch by late December 2023. The last current member of the Special Regulatory Sandbox Regime is UZINFOCOM, a company authorized to work on the development of NFT certificates.
Crypto Regulation in Uzbekistan
The government of Uzbekistan has been making efforts to introduce clear and effective regulations in its growing crypto space. The National Agency of Prospective Projects was established in May 2022 as the principal regulatory body for all crypto-related activities. Here are the key points:
– The NAPP is responsible for regulating mining, trading, blockchain applications, and more.
– In August 2022, certain exchanges, including Binance and FTX, were banned for non-compliance with license registration standards.
– The NAPP has granted licenses to virtual asset service providers, including Crypto Trade NET LLC and Crypto Market LLC.
– Uzbekistan aims to introduce a new cryptocurrency framework in 2023, allowing only licensed providers to operate.
Hot Take
The approval of Ravnaq-bank as the second participant bank in Uzbekistan’s crypto card initiative shows the country’s continued commitment to developing its crypto space. By creating a regulatory framework and allowing banks and other entities to offer crypto-related services, Uzbekistan aims to foster innovation and attract investment in the sector. The integration of the Mastercard payment platform into the crypto card project highlights the country’s efforts to bridge traditional financial systems with the world of cryptocurrencies. With the full project launch expected by the end of 2023, Uzbekistan is positioning itself as a player in the global crypto market.
By
By
By
By