Recent Authorization of Crypto Payment Cards in Uzbekistan

The regulatory authorities in Uzbekistan have recently granted permission to two local banks to issue payment cards, enabling users to swiftly convert their crypto assets into fiat currency.

As reported by News Bitcoin, the National Agency of Project Prospects of Uzbekistan (NAPP) has allowed two domestic banks to introduce bank cards for crypto payments.

NAAP operates as a regulatory body under the administration of the country’s president.

“This move is part of a pilot project to launch virtual cards linked to crypto wallets on exchanges, facilitating instant conversion to fiat currency,” wrote the crypto media in a recent report.

In an announcement this week, the authorities in Uzbekistan stated that they have approved Ravnaq Bank’s participation in the pilot project to create a reloadable virtual bank card that can be funded with crypto currency.

Earlier this month, the institution confirmed that another banking entity, Kapital Bank, would also release crypto cards, as reported by the Russian crypto news agency.

News Bitcoin adds that while Uzbekistan’s laws do not explicitly recognize crypto as a valid payment method, these new measures allow residents to utilize crypto currency through Mastercard cards that will be issued.

The official launch of these cards is scheduled for the end of December, offering a practical solution for those who wish to spend their crypto assets in everyday transactions.

“This project provides for the development and implementation of a new bank card product called the Uznex crypto card,” stated NAPP.

“This feature offers automatic replenishment of the bank card account with cash through the quick sale of crypto assets located in the crypto wallet opened on the partner crypto exchange for settlement operations,” the regulator explained.

The Uzbekistan government has taken steps to regulate the crypto sector in this Central Asian nation.

By the end of 2022, NAPP, which falls under President Shavkat Mirziyoyev, approved regulations for the issuance and circulation of crypto assets.

The agency has also introduced a licensing regime for crypto trading platforms, and five digital asset exchanges are now allowed to operate in the country, including Uznex, controlled by the state. Authorities in Tashkent are also moving to restrict access to foreign websites providing such services.

Starting from January 1, 2023, Uzbekistan citizens and legal entities have been allowed to trade crypto assets, but only on locally regulated service providers.

In June, the country issued its first crypto deposit license to a subsidiary of the UAE-based brokerage firm, Lockton Solution.