The Korea Blockchain Business Association (KOBEA) and the Uzbek government have signed a memorandum of understanding to establish the country’s first government-licensed crypto-exchange.
President of the Republic of Uzbekistan National Project Management Agency (NAPM) established a direct partnership with the KOBEA to facilitate the growth of the country’s cryptocurrency and blockchain sector.
In the coming years, the Uzbek government will contribute to the establishment of a large-scale fund to finance innovative initiatives and projects in the technology, cryptocurrency and blockchain industries.
Motivation Behind the Decision
In 2012, Uzbekistan was formally appointed as a specially allocated Global Terrorist under the Execution Order No. 13224. This allowed individuals and businesses in the United States to conduct financial transactions with companies and financial institutions in Uzbekistan.
During the year 2018, countries such as Iran and Turkey, the tightening of sanctions imposed by the US government and the devaluation of the national currency has shown a rapid increase in the demand for money due to crypto.
However, given both the US government and the EU’s lack of sanctions in the region, it is clear that Uzbekistan’s decision to open the economy for crypto and block-chain initiatives has nothing to do with the US and its relationship to the financial state. The country.
Tilya-Kori Madrasa in Registan Square in Samarkand – Uzbekistan
Instead, the NAPM agreed to develop and establish a friendship ecosystem for crypto initiatives, after Uzbek government officials noted the success of the government, the Zug of Malta and Switzerland, in bringing the block-related businesses into practical regulatory frameworks.
Malta, a country the EU has labeled as a “block-chain island”, has recently seen three multibillion-dollar companies move their centers to Malta due to appropriate cryptographic monetary policies.
Revolut and Binance set up new headquarters in Malta, bringing hundreds of employees and hundreds of millions of dollars in monthly profits. Tron, a major block-chain project, is expected to migrate to Malta in the coming months.
The government of Uzbekistan will create efficient banking relationships for large-scale research and development centers, mining towns and crypto-type stock markets in Chorvoq to compete against Malta against South Korea’s Busan, Jeju Island, Switzerland and other major crypto markets. .
Is the appropriate Crypto Policies Enough?
Many countries in Europe, the Philippines, South Korea, Malta, Switzerland, Singapore, Thailand and Europe have already introduced crypto-currency friendly policies to facilitate the insertion of the bloc chain.
Implementing only practical regulatory frameworks will not be enough to convince regional based companies with live crypto communities.
However, the government’s optimistic stance on the various sectors of the crypto-money market, including the first offers of money (ICO), mining, trade and development, will likely lead large-scale enterprises to consider establishing offices as a secondary option in Uzbekistan.
As can be seen in the example of Malta, it can take many years for the crypto industry of Uzbekistan to turn into the size of its competitors in Asia and Europe. Depending on the government’s efforts and commitment, the last project placed by NAPM could allow the country to be recognized as a new technology center in Central Asia.