Digital Technologies - The Times Of Central Asia

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Binance Officially Launches Operations in Uzbekistan

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.

Culture Digital Technologies Art and Culture Central Asian Art

Tajikistan Opens Its First Digital Art Gallery Highlighting Local Activists’ Work

The Khujand branch of the NGO Office of Civil Liberties has launched Tajikistan's first digital art gallery, which showcases the work of local activists. The digital gallery features art that addresses pressing social issues, such as domestic violence, discrimination, and environmental threats. It includes a diverse range of art forms, including digital works, photography, stories, and videos. [caption id="attachment_27723" align="aligncenter" width="1296"] Sad Dollar by Timur Shapirov; image: tut-gallery.tilda.ws[/caption] Prominent Artists and Initiatives The platform features contributions from prominent Tajik artists, including Zilola Imomova and Amina Ayyubi. It also includes works by winners and participants of art "hackathons" previously organized by the Office of Civil Liberties in Dushanbe and Khujand. Representatives of the organization explained the gallery’s purpose: “We aim not only to support art activists, but also to draw society's attention to pressing problems.” [caption id="attachment_27720" align="aligncenter" width="642"] Motherlandy by Muharram Buranova; image: tut-gallery.tilda.ws[/caption] Art with a Message Each work in the gallery is accompanied by a description explaining the idea behind it. Many of the featured pieces delve into topics such as gender inequality and social stereotypes, reflecting the personal stories and lived experiences of the artists. "Motherlandy" by Muharram Buranova, for example reimagines a powerful heroine as a positive, feminine counterpart to Homelander. Motherlandy radiates strength and courage as she shields a young girl from harassment, standing tall amidst a menacing crowd of zombie-like men, embodying the oppression and cruelty faced by girls in Tajikistan. With her steadfast presence, Motherlandy becomes a beacon of hope, inspiring belief that justice is not only needed but possible. Through this initiative, the digital gallery is seeking to amplify the voices of activists and provoke meaningful conversations about social issues in Tajikistan.

Internet e-Commerce Digital Technologies Digital Service

Foreign Online Marketplaces to Be Registered in Kazakhstan

Kazakhstan’s Minister of Trade and Integration, Arman Shakkaliyev, has proposed introducing regulations requiring foreign online marketplaces operating in the country to register on a dedicated electronic platform. The proposal was discussed during a government meeting on e-commerce development held on January 14. As outlined by Shakkaliyev, the mandatory conditions for these platforms would include: Compliance with product safety standards; Measures to combat counterfeit products; Protection of consumer rights and personal data; and Adherence to tax and customs transparency requirements. Addressing Consumer Complaints The proposed measures aim to address a growing number of complaints from Kazakh citizens about foreign online trading platforms. Many of these platforms operate outside of Kazakhstan's jurisdiction, making it difficult - if not impossible - for customers to return or exchange goods due to geographic distances. Furthermore, goods purchased through foreign marketplaces often lack certification in Kazakhstan, raising concerns over product safety and quality. The Rise of E-Commerce in Kazakhstan In 2023, purchases on foreign online marketplaces in Kazakhstan totaled $1.3 billion, accounting for about 20% of the country’s total online sales. The sector continues to grow, with new foreign platforms entering the market. Notably, Russian marketplaces Ozon and Wildberries plan to establish three fulfillment centers in Astana and Almaty in 2024, with a combined area of 291,000 square meters. Kazakhstan’s e-commerce industry has witnessed rapid growth in recent years. According to the Ministry of Trade and Integration, e-commerce transactions from January to November 2024 amounted to approximately 3.2 trillion KZT (over $6 billion), representing 14.5% of the total retail trade and creating over 300,000 jobs. The government aims to increase e-commerce's share in total retail trade to 18.5% by 2029. Comparative Trends and Local Initiatives The Times of Central Asia previously reported that in 2023, Kazakhstan's e-commerce volume exceeded 2.2 trillion KZT ($4.8 billion), accounting for 13% of all retail trade - an increase of 0.5% compared to the previous year. In addition to regulating foreign platforms, Kazakhstan is fostering its domestic e-commerce sector. Recently, a new local online marketplace, Teez, was launched, with investments totaling $50 million. Teez boasts its own infrastructure, further strengthening the country's digital economy.

Education Economy Astana Digital Technologies Start-ups

Bridging Borders: Louis Albertini on Central Asia’s Tech Growth, Startup Challenges, and Building Global Connections

Louis Albertini has been involved in technology and startups across the United States and Kazakhstan for a decade, working with Silicon Valley and venture capital-backed startups based in Kazakhstan, including ORBI and Farel. He is passionate about supporting founders in succeeding in the U.S. market and building connections between the U.S. and Kazakhstan. TCA spoke with Louis to gain insights from his experiences in the Kazakhstan market. TCA: Can you share your career journey in Kazakhstan and what motivated you to work in diverse roles like marketing, consulting, and startups? Louis: I arrived in Kazakhstan in July 2015 as a Princeton in Asia fellow and spent a year working in the President's Office at KIMEP University with Dr. Chan Young Bang. I served as his communications officer, writing official correspondence, liaising with different departments, and managing the day-to-day affairs of the office. After my PiA fellowship ended, I decided to stay in Almaty and start exploring the nascent startup scene. In 2016, I joined the founding team of a startup called ORBI, which developed 360-degree video recording glasses. This was the first Kazakhstani startup that attracted significant venture financing and was invited to interview at Y Combinator in 2016. We raised about $7 million for the company and secured $350 thousand in pre-orders, the largest ever for a Kazakh start-up. Back then, the YC batches were extremely small, and interviews were conducted in person at their historic but now-closed 320 Pioneer Way office in Mountain View. This was my first applied experience with Kazakhstan startups, and I've been involved ever since. TCA: What inspired you to create Redfern Partners, and how did you help address the challenges SMBs and tech companies face in Central Asia? Louis: Working at the American Chamber of Commerce gave me some insight into the market research landscape in Kazakhstan, primarily by listening to business leaders complain about available options. Besides the major consulting firms like McKinsey and BCG, which are more focused on quasi-state projects that need stamps of approval, the SMB space for high-quality independent research was largely empty. The Big 4 have variations of market research services, but their core specialty is audit and tax. Most local incumbents were formed in the early 1990s and use outdated methodologies that produce inaccurate or trivial insights. International research firms lack local coverage and rely on a loose patchwork of freelancers. Redfern was formed to offer high-quality, independent market research services to fill this void. We completed about twenty projects and continue to be a partner for the European Bank for Reconstruction and Development (EBRD) small business initiative. TCA: What common mistakes did you see SMBs in the region make, and how did you help them overcome these? Louis: The SMB space in Kazakhstan is hugely underserved and overlooked, offering the largest surface area regarding technology adoption. In the US, SMBs employ nearly half of the American workforce, representing 45% of America's GDP. In Kazakhstan, the market is mainly asymmetrical, with large players...

Banking taxes Digital Technologies Cryptocurrency Legislation

Kyrgyzstan Aims to Integrate Cryptocurrencies with Licensed Crypto Banks

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.

Legislation Digitalization e-Commerce Digital Technologies Digital Service

Uzbekistan Introduces New Rules for E-Commerce Platforms

The Cabinet of Ministers of Uzbekistan has issued a new decision titled “On Measures to Further Develop the E-Commerce Sector in Uzbekistan”, introducing updated regulations for e-commerce operators, including electronic trading platforms, order aggregators, and digital streaming service providers. Under the new regulations, only legal entities registered as residents of Uzbekistan can operate as e-commerce providers. This includes platforms that facilitate electronic transactions, such as marketplaces, aggregators, and streaming services. Entities or individual entrepreneurs that merely provide information about goods, services, or digital products without engaging in electronic contracts or transactions are not classified as e-commerce operators under these rules. From July 1, 2025, e-commerce operators in Uzbekistan must adhere to the following conditions: Legal Registration: Operators must be registered as legal entities in Uzbekistan. Compliance with Laws: Operators are required to follow legislation related to e-commerce, personal data protection, copyright, consumer rights, and advertising. Transparency: Upon request, they must provide information about their activities to authorized bodies free of charge. Retail Trade Rules: Operators must comply with retail trade regulations. Operational Standards: They must maintain an information system capable of ensuring the effective provision of services to e-commerce participants. These new measures are part of Uzbekistan’s broader efforts to regulate and encourage growth in its rapidly expanding e-commerce sector. Meanwhile, The Times of Central Asia previously reported that Russian e-commerce giant Wildberries is planning to enter the Tajikistan and Turkmenistan markets. Wildberries currently operates in Uzbekistan, Kyrgyzstan, Belarus, Kazakhstan, and Russia, offering a wide range of products, including clothing, footwear, electronics, and home furnishings. By setting clear rules for e-commerce operators, Uzbekistan aims to create a more structured and reliable digital marketplace, ensuring transparency, consumer protection, and compliance with international standards.