The licensing process for cryptocurrency exchanges in the Uzbekistan - YB Case 2024

Navigating the licensing process for cryptocurrency exchanges in the Republic of Uzbekistan

Navigating the licensing process for cryptocurrency exchanges in the Republic of Uzbekistan

Procedure for obtaining a licence to open a crypto-exchange in the Republic of Uzbekistan

Necessity of obtaining a licence

In today's world, cryptocurrencies are becoming increasingly popular and are widely used as a means of exchange and investment. However, as cryptocurrencies grow in popularity and importance, the зerils and menaces concomitant with their utilization are amplifying. In an endeavor to safeguard the concerns of financiers and ensure the security of pecuniary dealings, myriad nations have promulgated decrees in the realm of cryptographic exchanges, mandating distinct charters for such pursuits. The Commonwealth of Uzbekistan has embraced a statute sanctioning cryptographic currency interchanging endeavors solely with the requisite authorization. Pursuant to the statutory framework, a cryptobourse is an essential forum for the substitution of crypto-properties, their acquisition, and also their liquidation in digital format.

The body responsible for issuing licences in the Republic

In Uzbekistan, the regulation and issuance of licences for cryptocurrency exchanges is carried out by the relevant state authorities. One of the main bodies responsible for issuing licences and supervising the activities of cryptocurrency exchanges is the Republican Agency for Perspective Projects, which sets requirements, inspects licence applicants and monitors compliance with licence conditions.

Licence, its validity and possible transfer to third parties

According to current legislation, cryptocurrency exchange licences are perpetual, which gives them the right to start operating from the moment they are obtained. Please note that it is prohibited to transfer the right to engage in the licensed activity from one entity to another (sub-licensing).

Claims to the applicant for a licence

In order to obtain a licence to operate a crypto exchange, an applicant must meet certain requirements. In Uzbekistan, such requirements include, but are not limited to:

  • Juridical standing: Petitioners must be enrolled as lawful entities under the statutes of Uzbekistan.
  • Pecuniary robustness: Petitioners must possess ample fiscal reservoirs to guarantee the inviolability and safeguard of their transactions.
  • Adherence to statutes: Contenders ought to adhere to Uzbek statutes concerning ethereal pecuniary units, fiscal amenities, pecuniary absterge, and anti-financing of malevolent enterprises.
  • Technological substructure: Contenders must possess commensurate technological substructure for the invulnerable functioning of a cryptographic interchange.

It is equally noteworthy that the sanctioned pecuniary endowment must be remitted at the juncture of acquiring the permit.

List of documents required for licence registration

In order to obtain a licence to run a crypto exchange, the applicant must provide a number of documents. This list may include the following documents:

  • Application for a licence.
  • Constituent documents of the company.
  • A document confirming financial stability and availability of sufficient funds to carry out activities.
  • Description of the technical infrastructure of the crypto exchange.
  • Any other document specified by the licensing authority.

Deadline for consideration of the licence application

Once all required documents have been submitted to the licence applicant, the Prospective Projects Agency of the Republic of Uzbekistan will begin the application review process. The processing time may vary depending on a number of factors, including the volume of documentation submitted and the current workload of the licensing authority. The processing time is usually up to 20 days from the date of application submission.

Licence requirements and conditions to be complied with when carrying out activities

Having obtained a licence to operate a crypto exchange, the service provider must comply with certain licensing requirements. These requirements may include:

  • Compliance with rules and regulations set by the licensing authority, including security, anti-money laundering and anti-terrorist financing requirements.
  • Providing reports and information within the prescribed timeframes.
  • Co-operating with regulatory authorities and providing necessary data during inspections.
  • Maintaining the confidentiality of clients' personal data and ensuring the security of their assets.

In peroration, acquiring a sanction to enact a cryptographic interchange is a pivotal stride to guarantee legality and invulnerability in this domain. Petitioners necessitate meticulously scrutinizing the stipulations and furnishing all requisite manuscripts to consummate the sanctioning procedure triumphantly. Adherence to sanction prerequisites and stipulations is likewise a pivotal facet for the prosperous and dependable operation of a cryptographic interchange in Uzbekistan.

For more detailed information you can contact our lawyers, all contacts can be found on the website in the "Contacts" section.
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