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Uzbekistani Banks Given Approval to Roll Out Crypto-Enabled Mastercard Cards
Two local banks in Uzbekistan have received approval from the authorities to release payment cards that enable users to expend their digital currencies. This initiative forms part of an experimental project to introduce virtual cards connected to crypto wallets at an exchange, making instant conversion to traditional money possible.
Virtual Cards Linked to Cryptocurrency Wallets to be Launched by Uzbekistan’s Banks
The Uzbekistan National Agency of Perspective Projects (NAPP), a regulatory entity under the supervision of the presidential administration, has sanctioned the issuance of cryptocurrency payment cards by two indigenous banks.
NAPP declared earlier this week that it had authorized Ravnaq Bank’s participation in an experimental venture to design a virtual bank card rechargeable with cryptocurrencies. Previously in the month, Kapital Bank was also confirmed to be releasing a crypto card, as disclosed by the Russian digital currency news source, Bits.media.
The plan outlines the creation and deployment of a novel bank card offering termed “Crypto Card – Uznex,” detailed NAPP. This will include “a streamlined process for converting crypto assets in a partnered exchange’s crypto wallet into cash and adding it to the bank card account for transactions,” the regulatory body clarified.
Uzbekistan’s government has been actively involved in shaping regulations around the country’s crypto industry. Towards the end of 2022, NAPP, working under President Shavkat Mirziyoyev, ratified rules governing the creation and movement of digital assets.
NAPP also brought forth a licensing procedure for crypto trading venues, and at present, five digital asset exchanges, including the government-managed Uznex, have been granted permission to function in the nation, even as access to foreign sites offering similar services was curtailed in Tashkent.
Even though the legal system in Uzbekistan does not classify cryptocurrencies as an official payment method, the citizens will have the ability to transact in crypto using the newly approved cards, which will be part of the Mastercard payment network. The rollout of these cards is planned for December’s end.
As of January 1, 2023, trading in crypto assets has been permitted for Uzbekistani individuals and legal bodies, but only through the means of service providers regulated within the country. In a significant development, the first crypto depository license was granted to a United Arab Emirates-based brokerage firm’s subsidiary, Lockton Solution, in June.
It remains an open question whether more banks in Uzbekistan will be given the green light to issue crypto payment cards in the future. Feel free to share your thoughts in the comments section below.
Frequently Asked Questions (FAQs) about fokus keyword: Uzbekistan
Two local banks, Ravnaq Bank and Kapital Bank, have been authorized by Uzbekistan’s National Agency of Perspective Projects (NAPP) to issue Mastercard payment cards that allow users to spend digital currencies.
The launch of these crypto-linked Mastercard cards in Uzbekistan is scheduled for the end of December.
What will the new bank card product called “Crypto Card – Uznex” feature?
The “Crypto Card – Uznex” will feature an automated process for converting crypto assets located in a partnered exchange’s crypto wallet into cash, enabling the replenishment of the bank card account for transactions.
Is cryptocurrency recognized as a legal means of payment in Uzbekistan?
No, Uzbekistan’s law does not recognize cryptocurrency as a legal means of payment. However, with the new crypto-linked Mastercard cards, residents will be able to spend cryptocurrencies.
What actions has the government of Uzbekistan taken to regulate the crypto sector?
The government of Uzbekistan has been actively involved in shaping regulations around the crypto industry, including approving rules for the issuance and circulation of digital assets, introducing a licensing regime for crypto trading platforms, and authorizing five digital asset exchanges to operate in the country.
Since when have Uzbekistani citizens been allowed to trade crypto assets?
Uzbekistani citizens and legal entities have been allowed to trade crypto assets since January 1, 2023, but only on platforms of locally-regulated service providers.
Has Uzbekistan issued any crypto depository licenses?
Yes, in June, Uzbekistan issued its first crypto depository license to a subsidiary of the UAE-based brokerage firm Lockton Solution.