Digital Technologies - The Times Of Central Asia

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Digitalization

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.

Digitalization

Digital Kazakhstan: Pioneering E-Government and AI Innovations Amid New Challenges

Kazakhstan has solidified its position as a global leader in digital transformation, ranking among the top 25 countries in e-government development and achieving significant milestones in IT innovation. After nearly two decades of digitalization efforts, the country is now aiming to surpass the most advanced nations. The concept of e-government in Kazakhstan was first announced in former President Nursultan Nazarbayev’s address on March 19, 2004. That same year, a program for the establishment of e-government was approved, and the eGov.kz web portal was launched in 2006. Initially, the platform primarily provided informational services. The second phase of e-government (2007–2008) introduced interactive services, allowing citizens to request certificates, submit inquiries to government bodies, and track their progress online. A key milestone was the establishment of Citizen Service Centers on January 5, 2007. Before the digital era, obtaining documents was a lengthy and cumbersome process, plagued by long queues and widespread corruption. In 2024, digitalization in Kazakhstan reached new heights. The government reports that 92% of public services are now provided electronically. Innovations such as biometric identification and QR signatures have simplified access, with over eight million QR code signatures registered and more than 18 million identifications conducted through the Digital ID system this year, according to Kanat Tuleushin, the First Vice-Minister of the Ministry of Digital Development, Innovation, and Aerospace Industry (MCRIAP). The modernization of the e-government platform is ongoing, with plans to transition to the third version of eGov. Additionally, IT services from Kazakhstan are now exported to 86 countries, with key markets including Russia, Ireland, Mexico, the United States, and Singapore. A central focus of the government strategy is the development of artificial intelligence (AI). In 2024, a draft law on AI was approved, and a Committee on AI was established to oversee the development of this field in the country. Kazakhstan continues to modernize its e-government platform, with plans to transition to the third version of eGov. The country has also made strides in exporting IT services to 86 countries, including major markets like Russia, Ireland, Mexico, the United States, and Singapore. A key priority for the government is the development of artificial intelligence (AI). In 2024, a draft law on AI was approved, and a dedicated Committee on AI was established to oversee advancements in this area. In the 2024 UN E-Government Development Index (EGDI), Kazakhstan ranked 24th among 193 countries, climbing four spots since the last assessment. The country also secured a place in the global top 10 of the Online Service Index (OSI), which evaluates the accessibility and quality of government-provided online services. South Korea leads the EGDI rankings, while Kazakhstan outpaces many of its regional neighbors, including Armenia (53rd), Russia (56th), Uzbekistan (59th), Kyrgyzstan (89th), and Turkmenistan (172nd). Kazakhstan’s banking sector has also played a pivotal role in driving digital innovation. Major banks now integrate a wide range of public and business services into their apps. For example, Halyk Bank offers over 60 services, Kaspi.kz provides 40, Bank CenterCredit more than 30, and Freedom...

Digitalization

You Can Now Pay Your Fare on Tashkent’s Subway with the Palm of Your Hand

The Tashkent subway has introduced a pilot project for the “MyID Palm” fare payment system, which uses biometric technology to identify passengers by the unique vein pattern in their palms. This innovative system was developed by local scientists in collaboration with the Ministry of Transport, the payment service “ATTO,” and Octobank. It marks a significant advancement in biometric identification for public transportation. The system relies on palm vein scanners to read each passenger's unique vein pattern. According to the developers, this data is securely protected against unauthorized access and forgery. The goal of the technology is to enhance both security and convenience in fare payments. Currently, “MyID Palm” devices have been installed at 12 stations along the Chilanzar line, where they are operating in test mode. Plans are underway to expand this system to all metro stations in Tashkent. To use the service, passengers need an “ATTO” transportation card and the associated mobile application to create a biometric profile. The activation process involves scanning their palm at a designated info kiosk located at one of the stations equipped with the technology. Testing of the palm payment system began in late October 2023, with Druzhba Narodov station becoming the first to enable this feature. Earlier, in September 2023, the Tashkent subway began testing a Face ID payment system, which allows passengers to pay their fare using facial recognition technology. These advancements signal a move toward a more modernized and user-friendly public transportation system in Uzbekistan's capital, with both residents and visitors benefiting from the improved efficiency and security of biometric payment solutions.

EAEU

Work in the EAEU App Expands to Uzbekistan to Support Migrant Workers

The “Work in the EAEU” mobile app, developed by the Eurasian Development Bank’s (EDB) Fund for Digital Initiatives, has officially launched services for migrant workers in Uzbekistan, the EDB has announced. With this launch, the app now operates in Uzbekistan, a country that is neither a member of the Eurasian Economic Union (EAEU) - which includes Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia - nor an EDB member state. The expansion highlights the app’s broader regional ambitions. Initially launched in June 2022, the “Work in the EAEU” app was designed to support the free movement of labor within EAEU member states. The service has since expanded to include Tajikistan in September 2024, and now Uzbekistan. Services for Migrant Workers The app provides a wide range of services tailored for individuals seeking employment in Uzbekistan. Key features include: Job search tools and the ability to apply for vacancies. Assistance in applying to government authorities for personal identification numbers or registration cards. Access to tax services, information on work permits, and visa requirements, including types of visas and IT visas. Support in finding accommodation and purchasing air or railway tickets. Comprehensive legal and regulatory information on employment in Uzbekistan. The app is intended to simplify employment processes for migrant workers and enhance their access to essential services through a single platform. Migration Trends in the Region For decades, hundreds of thousands of citizens from former Soviet republics have migrated within the region in search of better job opportunities. Central Asian countries, including Uzbekistan, have historically supplied significant numbers of labor migrants to Russia. However, recent geopolitical shifts have altered migration patterns. Following Russia’s invasion of Ukraine and the partial mobilization in September 2022, thousands of Russian citizens fled their country, with many relocating to Central Asia. This reverse migration underscores the increasing importance of tools like the “Work in the EAEU” app, which facilitates mobility and employment across borders. The launch of the “Work in the EAEU” app in Uzbekistan represents a step forward in easing cross-border employment processes in the region. As migration patterns continue to evolve, such digital initiatives will play a crucial role in supporting both labor migrants and host countries.

AI in Central Asia: Kazakhstan Unveils Multilingual GPT Model

Researchers at the Institute of Intelligent Systems and Artificial Intelligence (ISSAI) at Nazarbayev University in Astana have introduced ISSAI KAZ-LLM, a large language model (LLM) specifically designed for the Kazakh language. Built on advanced neural network technology, the model serves as the foundation for Kazakhstan’s version of a generative AI system similar to GPT. ISSAI KAZ-LLM is tailored to Kazakhstan’s multilingual and multicultural environment, supporting Kazakh, Russian, and English, with additional functionality for Turkish. The model addresses language barriers and advances the field of generative artificial intelligence for resource-limited languages. The development team processed and synthesized over 150 billion tokens to ensure high-performance language capabilities. Beyond creating an AI tool, the project also fostered local expertise, involving Kazakhstani researchers at every stage, from data preparation to model implementation. Collaboration with international institutes enabled the creation of language-specific datasets and comparative analysis tools, utilizing input from linguists and state-of-the-art machine translation techniques. KAZ-LLM has a wide range of applications, including Kazakh language translations, content generation, and bulk text processing. Training data was sourced exclusively from publicly available materials, such as Kazakh websites, news articles, and online libraries, supplemented by contributions from various organizations. ISSAI director, Prof. Hussain Atakan Varol, told The Times of Central Asia: “This model reflects Kazakhstan's commitment to innovation, self-reliance, and the growth of its technology ecosystem. Our team developed two versions of ISSAI KAZ-LLM: one with 8 billion parameters and another with 70 billion parameters. Both are built on the Meta Llama architecture, optimized for use on high-performance systems as well as resource-constrained environments. Released under a CC-BY-NC license, the models are available for non-commercial use on the Hugging Face platform.” The ISSAI team is already exploring next-generation AI systems, including language-vision models, while expanding support for additional Turkic and regional languages. These initiatives aim to strengthen regional ties, promote linguistic integration, and create substantial economic and technological opportunities in Kazakhstan and beyond. Remarkably, this groundbreaking development was accomplished without government funding, with significant contributions from Kazakhstani IT companies. Kazakhstan is also gearing up to launch the International Center for Artificial Intelligence alem.ai. The center is set to become a hub for transforming the country into an AI-driven economy, fostering innovation, attracting investments, and supporting startups. By 2029, the export of Kazakhstani AI solutions is expected to reach $5 billion.

Legislation

Uzbek Teenager Illegally Earned Over $2.5 Million Through Cryptocurrency

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.