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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.

money Legislation Banking Finance

Kazakhstan Limits Payment Card Validity for Non-residents

The Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market (ARDF) has introduced new rules limiting the validity of payment cards issued to non-residents to one year. Exceptions are made for businessmen, investors, and diplomats. The changes are intended to reduce risks associated with drug trafficking and digital asset transactions. The ARDF clarified that the new restrictions do not apply to payment cards already in use. Under the updated regulations, banks are required to closely monitor transactions linked to drug trafficking; transfers to digital asset exchanges not affiliated with the Astana International Financial Centre (AIFC); and payments to electronic or online casinos. Banks must also scrutinize customers holding more than five cards at a single bank or three cards at three different banks. The new measures include stricter verification requirements for beneficial owners (BO): individuals who ultimately benefit from a company or assets, even if these are registered under another name. Financial institutions are now mandated to use all available tools, including official documents and public records, to identify the actual owners of assets. Previously, beneficial ownership was determined based solely on a person holding 25% or more of a company’s authorized capital. These reforms aim to enhance the transparency of financial transactions and prevent illegal activities, including fraud, money laundering, and other financial crimes.

Finance Banking Legislation National Bank

The National Bank of Kyrgyzstan Seeks Greater Control Over Commercial Banks

The National Bank of the Kyrgyz Republic (NBKR) has proposed a draft law aimed at regulating tariffs and commissions for banking and payment services provided by commercial banks. The proposal has been published for public discussion on the official government portal Koomtalkuu. The NBKR argues that the regulation is necessary to improve the accessibility of banking services for Kyrgyz citizens. While the current system of free pricing for banking services fosters competition, encourages better customer service and allows for economic flexibility, the regulator is concerned that it also creates barriers for certain segments of the population. “Under competition, some financial organizations may use hidden fees or complex tariff structures, which make it difficult for customers to understand the true cost of services. This also complicates the ability to compare offers and select the most favorable option,” the bill’s background brief states. The National Bank told The Times of Central Asia that interest rates on loans from banks and microfinance institutions in Kyrgyzstan can reach 33–34% per annum. Such high rates significantly increase the financial strain on citizens, reducing the availability of credit. “High tariffs also increase financial burdens on businesses, driving up operational costs. This can lead to higher prices for goods and services, dampened business activity, and reduced consumer demand. In turn, this creates additional risks for banks and the economy as a whole,” the NBKR explained. The central bank also expressed concerns about the potential for market abuse by large financial players. It noted that dominant institutions could inflate fees to suppress competition, discouraging innovation and slowing the development of more affordable financial products. The NBKR argues that Kyrgyzstan needs fair, transparent, and economically justified tariffs for banking services to mitigate these issues. The regulator believes such measures would reduce financial strain on consumers and businesses while fostering a more competitive and innovative banking sector. As of October 1, 2024, Kyrgyzstan's financial sector comprised: 21 banks; 194 non-bank financial and credit institutions; 3 credit bureaus; 1 guarantee fund; 41 payment organizations; and 40 payment system operators. This diverse and growing financial ecosystem underscores the importance of effective regulation to ensure broad accessibility and equitable practices in the banking sector.

AIIB Finance Hydropower Rogun HPP HPP Energy Infrastructure

AIIB Commits $500 Million to Tajikistan’s Rogun Hydropower Project

The Beijing-based Asian Infrastructure Investment Bank (AIIB) has approved a multiphase program totaling $500 million, including an initial Phase 1 loan of $270 million, to support Tajikistan’s flagship Rogun Hydropower Plant (HPP) project. The announcement was made on January 6, following the financing approval on December 19, 2024. The Rogun HPP, located on the Vakhsh River — a tributary of the Amu Darya River — lies 110 kilometers from Dushanbe, Tajikistan’s capital. With a designed generation capacity of 3,780 MW, a 335-meter-high dam, and a reservoir spanning 170 square kilometers, the Rogun HPP is expected to deliver improved electricity access to around 10 million people. It aims to address Tajikistan’s chronic winter power shortages and position the country as a key regional energy supplier. The project is co-financed with the World Bank, with potential contributions from a global consortium of donors. It seeks to enhance the supply of clean, affordable, and climate-resilient hydropower, with the potential to export electricity to neighboring Central Asian countries. As Central Asia’s energy demand is projected to grow by 40% by 2030 and triple by 2050, the Rogun HPP will play a pivotal role in increasing reliability and reducing the cost of electricity supply across the region. Konstantin Limitovskiy, AIIB Chief Investment Officer, commented on the significance of the project, stating: "This project will significantly contribute to the green energy transition and energy security of Central Asia. Investing in sustainable energy infrastructure is not merely about meeting today’s demands, but about empowering future generations with clean, reliable power that drives transformative growth, strengthens resilience, and unlocks the full potential of the region." Tajikistan ranks eighth globally in hydropower potential, yet only about 4% of this capacity is currently utilized. The Rogun HPP is set to play a critical role in decarbonizing electricity grids across Central Asia, supporting the region’s ambitious Nationally Determined Contributions (NDCs) under the Paris Agreement.

Finance Legislation Media Government Mass Media Media Freedom

Kyrgyz Journalists Reject Japarov Criticism of Foreign Funding in the Media

Kyrgyzstan's President Sadyr Japarov has criticized the country's media for its willingness to accept foreign funding. American diplomats disagree with the government’s “accusations,” while local journalists pointed out that Kyrgyz media operates with the help of advertising and grants. Speaking at the recent People's Kurultai (Congress) in Bishkek, Japarov criticized several Kyrgyz media outlets for receiving foreign funding, accusing journalists of spreading false information. According to him, most Kyrgyz publications have foreign sponsors. Japarov claimed that journalists obey their "masters" and are therefore deprived of freedom of speech. The president also shared data on foreign funding received by some opposition media outlets and NGOs. “These funds are accounted for in reports only superficially. Their foreign sponsors say, ‘Yes, they are doing a good job.’ But what’s really happening? Here, they spread false information, look for negativity, and undermine the reputation of others. And when lawsuits are filed against them, they immediately claim it’s an attack on freedom of speech,” Japarov said. The president addressed the leadership of the U.S. State Department, stating that funds should be directed directly to Kyrgyz authorities. “We will ensure their effective use. Do you want to raise the level of journalism? We can do it. Do you want complete freedom of speech? We guarantee it,” Japarov emphasized. A few days later, the U.S. Embassy in Bishkek responded to the criticism. “In the field of journalism, our assistance is aimed at funding fact-checking programs, supporting Kyrgyz-language journalism, and assisting investigative journalists in uncovering violations, including corruption,” the diplomats said in a statement. The embassy emphasized its belief that independent media, which performs a watchdog role in society, is crucial for any government. In an interview with The Times of Central Asia, journalist Chynara Sydykova shared that grant support enabled her to implement several socio-cultural projects. “These projects helped us grow and become independent professionals in directing, producing, and project management. Finally, it allowed us to simply become journalists capable of working honestly, objectively, and professionally, covering topics of public interest,” Sydykova said. The investigative journalist noted that none of the grant providers interfered with the work process. However, Sydykova admitted that manipulations could occasionally occur. “Journalists shouldn’t cling to every visible opportunity to get funding. They need to build a reputation so that no one would even think of using them as an agent of influence. Thanks to my television projects, I provided real help to respondents in the areas of health and social injustice,” Sydykova added. Public figure and journalist Alisher Tashmatov told The Times of Central Asia that he takes a neutral stance on grants. According to him, the most important thing is that grants allocated by foreign institutions should not threaten Kyrgyzstan’s national security. “In Kyrgyzstan, media survives through advertising and grants. Only a few receive funding from the state. Moreover, even state-owned media occasionally receives financial assistance from foreign institutions and companies,” he noted, adding that criticism of the authorities should be well-founded.

Finance Legislation Government Criminal Executive Code Public Security

Uzbekistan Moves to Penalize Financing of Mass Disturbances

Uzbekistan’s Parliament, the Oliy Majlis, is taking decisive steps to address the organization and financing of public disturbances. On December 11, the Legislative Chamber approved a draft law amending Article 244 of the Criminal Code. Passed in its first reading, the amendments aim to strengthen the country’s legal framework for tackling mass disturbances. During a parliamentary session on December 24, the draft law advanced further, reaching its third reading and gaining adoption. The updated Article 244 introduces several significant changes: A new third section establishes specific liability for individuals undergoing training with the intent to participate in mass disturbances. A fourth section introduces fines for financing such activities. A fifth section provides an exemption from criminal liability for individuals who voluntarily report to law enforcement after undergoing such training. These amendments are designed to deter organized disturbances while promoting cooperation with authorities.