Uzbekistan’s Senate has approved amendments to the Law on Personal Data, a move aimed at easing restrictions that have hindered the operation of international online payment platforms and slowed digital economic growth. The changes were adopted during the Senate’s 13th plenary session, according to official parliamentary sources.
Lawmakers noted that an increasing number of Uzbek freelance developers are selling software products and digital content to foreign clients via global platforms. While some major services accept payments through bank cards or transfers, others, such as Upwork, Fiverr, Envato, and Storyblocks, rely almost exclusively on PayPal. However, PayPal does not fully support bank cards issued in Uzbekistan, largely due to the country’s data localization requirements.
Under the current legislation, personal data must be stored on servers located within Uzbekistan. This requirement has discouraged several international payment providers from entering the local market. Senators stated that the newly approved amendments aim to remove these barriers and establish clearer conditions for cross-border data use.
The revised law stipulates that only specific categories of personal data, such as biometric, genetic, and telecommunications-related information, must remain stored domestically. Other types of personal data may be transferred and stored abroad, provided that strict information security protocols are observed. The Cabinet of Ministers will be authorized to approve a list of countries deemed to offer adequate personal data protection standards.
According to lawmakers, these changes will accelerate the development of fintech, e-commerce, and the broader digital economy. They are also expected to enable legal and transparent payment mechanisms for freelancers and improve access to contactless payment options for foreign tourists.
The reform builds on a government initiative launched in October 2024, when authorities instructed the Tourism Committee, the Central Bank, and the Ministry of Digital Technologies to engage with payment providers such as Alipay, Apple Pay, Google Pay, PayPal, and UniPay. The directive included a review of national legislation to facilitate their integration into Uzbekistan’s financial system.
