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The National Agency for Prospective Projects has announced that Binance, one of the world’s largest cryptocurrency exchanges, will officially provide services to users in Uzbekistan. According to the agency’s press service, Binance will operate in the country through the local company CoinPay LLC, ensuring compliance with Uzbekistan’s laws. Residents of Uzbekistan will be able to access the platform via coinpay.uz, which will allow users to deposit and withdraw funds in the national currency using bank cards and local payment systems. “The system will launch after integrating all partner platforms, including national payment systems,” the agency stated. Legal Challenges Resolved This development comes after Binance faced regulatory challenges in Uzbekistan. In January 2024, the National Agency for Prospective Projects fined Binance for non-compliance with the country’s laws on cryptocurrency asset turnover. The agency subsequently filed a lawsuit in the Tashkent City Economic Court to enforce the fine. The court trial, which ran from March 26 to June 7, 2024, ruled in favor of the agency. Binance was fined 300 base calculation amounts, which the company paid in full to the state budget. Binance’s Expansion in Central Asia Uzbekistan is the latest addition to Binance’s growing presence in Central Asia. The exchange launched its first local digital asset platform in the region in Kazakhstan in June 2023. This platform is based at the Astana International Financial Center. Later that year, Binance Kazakhstan partnered with the National Bank of Kazakhstan and the National Payment Corporation to implement a groundbreaking project: the issuance of the world’s first stablecoin backed by a national digital currency. This innovation was tested on the BNB Smart Chain (BSC) network. Binance has also made efforts to engage with the cryptocurrency community in Kyrgyzstan. In January 2023, the company held its first community meet-up in the country. In May of that year, Binance’s regional head for Central Asia, Kirill Khomyakov, described Kyrgyzstan as a promising market for cryptocurrency development. However, despite these initiatives, Binance has not yet officially launched operations in the Republic. Binance’s official entry into Uzbekistan marks another step in its strategic expansion across Central Asia. By complying with local regulations and collaborating with a licensed partner, Binance has reinforced its commitment to integrating its platform into Uzbekistan’s growing cryptocurrency landscape.
Kyrgyzstan’s Ministry of Economy and Commerce has submitted a draft law titled "On Amendments to Certain Legislative Acts of the Kyrgyz Republic in the Sphere of Virtual Assets" to the country’s parliament. The proposed legislation aims to establish licensed crypto banks to provide regulated banking services related to digital assets and cryptocurrencies. The Ministry emphasized the urgency of integrating crypto assets into Kyrgyzstan's financial system, citing the rapid growth of digital technologies and cryptocurrencies. In its commentary on the bill, the Ministry stated: “Given the rapid development of digital technologies and cryptocurrencies, the creation of a crypto bank is an urgent necessity for the integration of crypto assets into the traditional financial system of the country. A crypto bank will ensure safe, regulated, and convenient interaction of citizens and businesses with cryptocurrencies.” The Ministry identified several key goals for the proposed crypto bank: To legalize and regulate the cryptocurrency market by establishing clear rules and standards. To increase trust in crypto assets while ensuring the protection of users’ rights. To mitigate risks of fraud and unauthorized access to funds. The Ministry also highlighted the potential economic benefits of introducing a crypto bank. Legalizing cryptocurrency transactions would increase transaction volumes and boost tax revenues. Additionally, the initiative is expected to create new jobs in the fintech sector, positioning Kyrgyzstan as a regional hub for financial innovation. Kyrgyzstan already taxes cryptocurrency mining, with a rate of 10% applied to electricity costs for mining activities. This rate includes VAT and sales tax. From January to November 2024, Kyrgyzstan collected 46.6 million KGS (approximately $537,000) in cryptocurrency mining taxes, nearly half the total collected in 2023, according to the Ministry of Finance. While public interest in cryptocurrencies is growing among individuals and businesses in Kyrgyzstan, the market remains poorly regulated. The Ministry believes that a licensed crypto bank will address these challenges, increasing transparency, trust, and financial security. By adopting this legislation, Kyrgyzstan seeks to modernize its financial system and embrace emerging opportunities in the digital economy.
A 17-year-old boy has been detained in the Zhondor district of Uzbekistan’s Bukhara region for allegedly conducting illegal cryptocurrency transactions. Authorities claim the teenager engaged in the acquisition, transfer, and exchange of crypto-assets without obtaining the required licenses. Over the course of his activities, he reportedly amassed approximately 34 billion UZS (around $2.6 million). Law enforcement officials have filed a criminal case against the teenager under Article 278-8, Part 3, of Uzbekistan’s Criminal Code. This article addresses violations of laws regulating cryptocurrency transactions. Authorities have seized all of the funds the teenager earned through his alleged activities. A preliminary investigation is ongoing to determine the full extent of the violations and uncover any additional details surrounding the case. Cryptocurrency transactions in Uzbekistan are tightly regulated, with severe penalties for non-compliance. Under the law: Purchasing, selling, or exchanging crypto-assets without a license is punishable by administrative arrest of up to 15 days or a fine of 20–30 Basic Calculation Units (BCUs). Confiscation of both crypto-assets and associated funds is also mandatory. If an individual continues illegal activities after receiving an administrative penalty, they may face criminal charges, including imprisonment of up to 5 years. Unauthorized cryptocurrency mining can result in administrative arrest of up to 5 days or fines ranging from 20 to 30 BCUs. For reference, one BCU currently equates to 330,000 UZS (about $25). To conduct cryptocurrency operations legally in Uzbekistan, individuals and businesses must use licensed service providers. Licensed entities ensure compliance with the country’s strict regulatory framework, minimizing risks for participants in the crypto market.
The Kyrgyz Finance Ministry plans to set aside 20 billion KGS ($230m) to issue digital bonds and treasury bills. Kyrgyz Cabinet Chief Akylbek Japarov has said at a meeting with journalists that according to him, the central bank's monopoly on issuing money is ending. Japarov discussed the role of the U.S. dollar in the country's economy and emphasized that it has become a tool of political pressure. “We send payments, but they are delayed without explanation. Sometimes, the delays last up to three months. This hurts trade. If there is no money, there is no trade. I think a new toolkit will soon appear,” he stated. He said the BRICS organization is already working on alternative payment systems to support trade. Cryptocurrency, and any currency backed by the gold reserves of the countries that use it, can replace the dollar in international trade. “Now everyone who has a gadget can emit cryptocurrency into various cryptocurrencies. In Kyrgyzstan, we will work on this issue and have a crypto exchange,” Japarov noted. He noted that digital bonds and promissory notes issued by the Kyrgyz Finance Ministry will be backed by gold. Corresponding amendments to the legislation are already being submitted to Parliament for consideration. Earlier, the National Bank of Kyrgyzstan also announced the launch of a pilot project for the national digital currency, “digital som,” and the creation of a legal framework for it. The Ministry of Economy and Commerce of Kyrgyzstan also announced the creation of crypto banks that will work with virtual assets. “Given the rapid development of digital technologies and cryptocurrencies, creating a crypto bank represents an urgent need to integrate crypto assets into the country's traditional financial system. Cryptobank will ensure safe, regulated, and convenient interaction of citizens and businesses with cryptocurrencies”, noted the Ministry of Economy.
The International Association of Crypto-Economy and Artificial Intelligence was established in Kyrgyzstan with the assistance of the Russian Association of Crypto-Economy, Artificial Intelligence and Blockchain (RAKIB), TASS reports. RAKIB was created to unite participants in the blockchain technology market and investors in blockchain-based projects in cryptocurrencies. The association aims to promote the spread and deep integration of blockchain technologies into the economy and legalize the use of electronic currencies based on this technology. Alexander Brazhnikov, executive director of RAKIB, said on the margins of the Kazan Crypto-forum that the main tasks of the international association established in Kyrgyzstan will be to ensure security in the digital world, cross-border payments, and the creation of new projects. Brazhnikov will become the chairman of this association, which was officially registered a week ago and will have its headquarters in Bishkek. “We want to make people engaged in this business cooperate,” Brazhnikov said, noting that associations from different countries and individual legal entities can join the organization. According to him, some countries in Africa and the Middle East have shown great interest, and more than 15 countries may join the association by the end of 2024.
