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Capital Markets

Uzbekistan Unveils New Capital Market Reforms to Attract $1 Billion in Investment

Uzbekistan has approved a presidential decree aimed at enhancing the investment climate in the country’s capital markets. According to the Ministry of Justice, the reform package is designed to attract $1 billion in new investments by 2030 through the introduction of modern financial instruments. As part of this strategy, authorities plan to issue corporate bonds worth five trillion Uzbekistani som (approximately $415 million) to expand funding opportunities for local businesses. The ministry noted that the decree also focuses on improving investor protection by introducing mechanisms expected to eliminate over 85 percent of current violations in the capital market. A key component of the reform is the indefinite extension of the “Regulatory Sandbox”, a special legal regime that allows financial institutions to test innovative products under simplified regulatory conditions. Within the sandbox framework, Uzbek legal entities can apply for participant status, while foreign organizations and local investment funds may offer financial services related to the safe custody and accounting of securities they issue or hold. The decree also permits issuers, in specific cases outlined by law, to release unsecured corporate bonds exceeding the size of their own capital, broadening fundraising options for businesses. Separately, Uzbekistan has taken a major step toward digital finance. As previously reported, the Wallet service on the Telegram messaging platform officially launched in Uzbekistan on December 9, giving over 27 million local users access to cryptocurrency transactions. The service supports major digital assets such as Bitcoin, Toncoin, and USDT, enabling users to buy, store, and transfer crypto using local payment systems. The launch reflects Uzbekistan’s broader ambition to position itself as a regional hub for regulated digital financial services.

Finance

Wallet in Telegram Launches in Uzbekistan, Expanding Crypto Access to Millions

Wallet in Telegram, a global digital asset service integrated directly into the Telegram messaging app, officially launched in Uzbekistan on December 9, opening up crypto access to more than 27 million local users. The move marks a major expansion of Telegram’s financial ecosystem and reinforces Uzbekistan’s role as a regional leader in regulated digital finance. The service allows users to buy, store, and transfer cryptocurrencies without needing to install additional applications. Registration takes only seconds, and transactions can be completed using local payment systems such as Humo, Visa, and Mastercard. Wallet currently supports Bitcoin, Toncoin, USDT, and over 200 other digital assets. According to the company, the goal is to make crypto transactions as seamless as sending a message, an especially relevant approach in Uzbekistan, where Telegram usage exceeds 88% of the internet-connected population. By embedding financial tools into an everyday platform, Wallet aims to normalize digital asset use and broaden access to global financial technologies. The technical infrastructure for Wallet’s Uzbekistan launch is provided by Asterium, the country’s largest crypto ecosystem and a key fintech player. Asterium is responsible for ensuring secure transactions, identity verification, and data protection. “Our mission at Asterium is to make working with crypto assets simple and accessible for everyone. Wallet in Telegram reflects our product philosophy: it is convenient, transparent, and secure, meaning it is genuinely useful for people,” said Komilhodja Sultonov, CEO of Asterium. The service was licensed by Uzbekistan’s National Agency for Perspective Projects (NAPP), the regulatory body overseeing the digital asset sector. Uzbekistan has developed one of Central Asia’s most comprehensive legal frameworks for crypto, with a strong focus on user protection and structured innovation. In response to questions from The Times of Central Asia, NAPP clarified how Wallet aligns with current regulations. Askarjon Zakirov, Head of the Crypto-Assets Turnover Sphere Development Department, emphasized that Uzbekistan legally distinguishes crypto assets from fiat currency. “Firstly, we say that a crypto asset is not a means of payment or a monetary equivalent,” he said. [caption id="attachment_40689" align="aligncenter" width="300"] @TCA/Sadokat Jalolova[/caption] Zakirov explained that crypto is treated as a form of property under Uzbek law. As such, transferring cryptocurrency is regarded as a transfer of property rights rather than a financial transaction with monetary obligations. Pavel Khristolubov, COO of Fintech and Web3 at Wallet in Telegram, also underscored the platform’s commitment to regulatory compliance. “It’s very important for us to operate within the framework of our license. This means we don't compete with local payment systems,” he said. Khristolubov added that Wallet users can choose between custodial services and non-custodial, on-chain options, offering varying degrees of freedom and security. Andrew Rogozov, CEO of The Open Platform (TOP), the technology company behind Wallet, described Uzbekistan as one of the world’s most dynamic digital markets. “By combining Telegram’s scale with regulatory clarity and high mobile adoption, we see Uzbekistan as a model for how emerging markets can leapfrog into convenient, technology-driven finance,” he said. Globally, Wallet in Telegram has over 150 million registered users. Its launch...

devaluation

Devaluation in Kazakhstan: Grim Forecast or Financial Strategy?

Expectations of a potential devaluation of Kazakhstan's national currency, the tenge, are gaining momentum in the country, despite its recent strengthening against the dollar. While the government projects stability, some financial players and experts openly support a weaker tenge. But are these fears grounded in economic reality, or do particular interests drive them? Kazakhstan’s currency is particularly sensitive to global market shifts because around half of the country’s export revenues come from oil and other raw materials. When commodity prices fall or external demand weakens, pressure on the tenge increases. The currency is also affected by high import dependence: many consumer goods, industrial inputs, and food products are priced in foreign currencies, making the economy highly responsive to exchange-rate movements. One of the most vocal proponents of a free-floating tenge is economist Aidarkhan Kusainov, a former adviser to the head of the National Bank. A long-time advocate for a free-floating tenge, Kusainov maintains that the currency remains overvalued. In 2021, he predicted the exchange rate would reach 500 tenge to the $1. As of now, the rate hovers around 510. Kusainov has recently gained broader attention following his criticism of rising taxes and utility tariffs during an appearance on a YouTube podcast hosted by Senate Speaker Maulen Ashimbayev. “Today, the singer of devaluation, a well-known but unpopular economist, woke up as a competent people’s professional (judging by the comments),” Kusainov wrote, replete with smiling emojis in assessing his newfound popularity on his Telegram channel. His prediction of a $1-to-1,000-tenge exchange rate has indeed gone viral. “If our National Fund runs out today, the exchange rate will instantly soar above 1,000. As soon as we stop injecting petrodollars and transfers into the economy, the tenge will drop to 800–900, and then quickly weaken to beyond 1,000. I've always advocated for these measures," he said in an interview with Ulysmedia. These debates are unfolding against a backdrop of persistent inflationary pressure. Although headline inflation has moderated from its earlier peaks, price growth in consumer-credit-driven segments remains elevated. Any significant weakening of the tenge would likely feed directly into consumer prices, especially for imported goods, which still account for a large share of household consumption. Kusainov's projection is not shared by the majority of analysts, however, who see such a scenario occurring only under the weight of severe external shocks. In contrast, the National Bank’s forecasts remain more conservative. According to analysts surveyed by the Central Bank in November 2025, the exchange rate is expected to reach 525.8 tenge by the end of 2025. For 2026 and 2027, the tenge is projected to weaken gradually to 548.2 and 565, respectively. Economist Serik Kozybaev, among others, rejects the idea of a sharp devaluation. He has attributed the tenge’s recent strength to currency interventions by the National Bank: “There are no serious reasons for such a significant weakening. On the contrary, over the past month, the exchange rate improved from 540 to 518 due to announced interventions. I expect this trend to continue, possibly bringing...

Finance

Central Asia’s Digital Currency Ambitions: New Opportunities and Old Constraints

Central Asia is entering a period of accelerated financial transformation. Kyrgyzstan has launched one of the world’s first state-backed gold-backed stablecoin, USDKG, a digital asset fully backed by physical gold and issued under the direct supervision of the Ministry of Finance. Simultaneously, Kazakhstan is advancing one of the most mature central bank digital currency (CBDC) initiatives in the post-Soviet space: the digital tenge (national currency). Uzbekistan is developing its own digital economy framework, while Tajikistan and Turkmenistan are slowly initiating financial modernization. Amid these developments, Central Asia is emerging as a surprisingly bold laboratory for digital finance. This raises a pressing question: can the region develop a unified digital currency ecosystem that reduces dollar dependency, facilitates cross-border transactions, and enhances economic sovereignty? Strategic Logic of Digital Integration The idea of a regional digital currency is no longer utopian. Central Asia is one of the world's most significant hubs for cross-border remittances. In 2024 alone, migrants sent back a record $5.8 billion to Tajikistan (45% of GDP), approximately $15 billion to Uzbekistan, $2.9 billion to Kyrgyzstan, and $258 million to Kazakhstan. The current system is costly, slow, and heavily reliant on the dollar. Digital currencies could drastically reduce transaction costs for both migrant workers and businesses. In remote areas, where banking infrastructure is underdeveloped, cash still dominates. CBDCs could allow citizens to access state payment services directly, bypassing commercial banks. Digital finance also offers protection against external economic shocks, sanctions, and volatility. Coupled with the digitalization drives in Kazakhstan, Uzbekistan, and Kyrgyzstan, and regional integration ambitions, such as Uzbek President Shavkat Mirziyoyev’s proposal to create a Central Asian Community, conditions are forming for financial cooperation. Diverse National Models Approaches to digital currency vary significantly. Kazakhstan’s digital tenge, led by the National Bank, emphasizes institutional stability, security, and integration with existing banking systems. A full launch is expected by the end of 2025. Kyrgyzstan has taken a more unconventional route. Its USDKG stablecoin, built on the Tron blockchain and backed by gold, aims to assert financial autonomy. However, it raises concerns about transparency, sustainability, and the reaction of traditional banks. A gold-backed stablecoin also directly challenges dollar dominance. Crypto analysts such as Ryan Adams speculate that Washington may be monitoring Kyrgyzstan’s experiment closely, fearing it could inspire similar moves in India, China, and Brazil. Uzbekistan is advancing its digital economy cautiously. While its government maintains strict cryptocurrency controls, this regulatory clarity may lay groundwork for a CBDC, though it limits space for innovation. Tajikistan and Turkmenistan remain on the sidelines, but rising demographic pressures, migration, and logistics projects are nudging both toward digital finance. The lack of coordination among these models represents both an opportunity for experimentation and a barrier to integration. Key Challenges Despite growing momentum, the road to a unified digital architecture in Central Asia remains fraught. The first major obstacle is regulatory fragmentation. Digital currencies require legal reforms across currency legislation, taxation, customs, and anti-money laundering/counter-financing of terrorism (AML/CFT) protocols. At present, each state operates independently, making regional harmonization...

Finance

Kazakh Businessmen in Talks to Acquire Stakes in KazZinc and Kazakhmys

Kazakh entrepreneurs Shakhmurat Mutalip and Nurlan Artikbayev are in negotiations to acquire stakes in two of Kazakhstan’s largest industrial giants, KazZinc and Kazakhmys, according to a report by Bloomberg, citing unnamed sources. Bloomberg reports that Mutalip, the owner of construction firm Integra Construction KZ, has been offered the chance to purchase Glencore’s 70% stake in KazZinc. Meanwhile, Artikbayev, the majority shareholder of Qazaq Stroy, is in discussions over acquiring a stake in Kazakhmys. Sources emphasized that the negotiations are still in early stages. No final agreements have been reached, and key terms such as pricing and payment structures remain unresolved. As of the end of 2024, 99.1% of Kazakhmys shares are held by Kazakhmys Copper, through its parent entity Kazakhmys Holding Limited, which is registered with the Astana International Financial Centre (AIFC). KazZinc is majority-owned by Glencore International AG, which controls 69.74% of the shares. The remaining 29.82% is held by the state-owned enterprise Tau-Ken Samruk, with 0.44% owned by minority shareholders. Both businessmen have recently been received by President Kassym-Jomart Tokayev. Artikbayev, ranked 44th on Forbes Kazakhstan’s 2025 list, met with the president on November 4, while Mutalip met with him on November 21. Both meetings focused on the development of Kazakhstan’s construction sector and the role of private business in infrastructure projects. Financial analyst Rasul Rysmambetov suggested that the potential deals reflect an effort to consolidate domestic control over key strategic assets. “This looks like an unfolding of what I call economic nationalism. Local players are expected to control subsoil assets, as they can invest more intensively in downstream processing. Much like Korea’s chaebols, the goal will be to extend the value chain within the country,” he wrote on his Telegram channel.

Finance

Over 62% of All Microloans in Kyrgyzstan Are for Consumer Purposes

Between January and September 2025, microcredit organizations in Kyrgyzstan issued loans totaling approximately $720 million to nearly 797,000 recipients, according to the National Statistics Committee. These figures highlight the growing role of microfinance in a country with a population of just over 7 million. While the number of borrowers declined by 13.2% compared to the same period in 2024, the total volume of microloans increased by 33.6%, suggesting a trend toward larger individual loan sizes. Bishkek, the capital, accounted for the largest share of microloan recipients, with nearly 259,000 people, 32.5% of the nationwide total, taking out loans during the nine-month period. Consumer lending dominated the sector, making up more than 62% of all microloans issued. Loans for agricultural development comprised just over 15%, while those for trade and the catering sector represented 9.5%. Compared to the same period last year, the share of consumer loans rose by 9.7%, while the share of agricultural loans declined by 4.6%, reflecting a shift in borrowing priorities. Kyrgyzstan currently has 21 commercial banks and 515 non-bank financial institutions, including microcredit organizations. The financial sector’s client base grew by 40% in the first nine months of 2025, largely due to increased adoption of mobile banking and the rise of online lending through microfinance platforms. In response to growing concerns about digital financial fraud, Kyrgyzstan introduced a self-restriction mechanism on November 1. The system allows individuals to voluntarily block new loans or credit being issued in their name, an effort to protect consumers from unauthorized lending using forged or stolen identification documents. Under the new regulation, banks and microfinance institutions are legally required to verify whether a client has enacted a self-restriction before issuing a loan.