Uzbekistan is starting to explore the idea of regulating crypto by introducing crypto banks. Two private banks located in Uzbekistan, Kapital Bank and Ravnaq Bank, have shown interest in such a project. They have been seeking and now have approval from the NAPP of Uzbekistan. They will also consider releasing cards for use with crypto, Mastercard ones. Mastercard is famous worldwide as a reliable and responsible payment system, which should reassure prospective clients.
Earlier, all the way back in May of this year, the NAPP announced that this project would be led by Kapital Bank, releasing its crypto card. Only this last Monday Ravnaq Bank announced that it had joined in this venture with Kapital Bank. Both of the crypto friendly banks have already registered in a digital sandbox that has national status, alongside another which is not in this specific scheme.
Crypto Market Receives Support
The idea of releasing a national card that is dedicated specifically to crypto should be exciting for crypto enthusiasts. It shows official approval to use cryptocurrencies in the real world in a practical manner. This card specifically for the Uzbekistan market will be the UzNEX. It will combine the bank accounts of customers using either banks alongside crypto exchanges. Therefore each customer will have their own crypto bank account with traditional financial services.
There is a deadline in place for when both banks will release these crypto cards for their customers. If all goes well, they will do their release before December 2023.
In order to regulate the crypto market in the country, Uzbekistan has been looking at ways to keep it under control. This means regulation. Over the course of 2023 they have been reducing crypto services to trustworthy institutions, crypto firms with licences. This includes crypto banks. They started this process in November 2022. They had also been reducing the activities of crypto exchanges they deemed less trustworthy. There were a rather large number of them, including Binance, Huobi, and FTX.
