Crypto Overview in Uzbekistan

Regulatory data is for informational purposes only and may not reflect the most current legal developments. Always consult qualified professionals before making decisions.

Legal Classification and Regulatory Framework

Cryptocurrency Status

Uzbekistan recognises and regulates crypto-assets but does not treat them as legal tender. Under the framework built by Presidential Resolution PP-3832 (July 2018) and Presidential Decree No. 3926 (September 2018), crypto-assets are classified as property rights, with tokens divided into secured and unsecured categories. Trading and mining are lawful only when conducted through NAPP-licensed providers, while using cryptocurrency to pay for ordinary goods and services inside the country remains prohibited for standard digital assets.

Criminal Code and Code of Administrative Responsibility amendments that took effect on April 20, 2024 introduced penalties for unlicensed acquisition, sale, or exchange of crypto-assets and for operating VASP services without proper licensing, ranging from administrative fines to up to five years imprisonment for large-scale or repeat offences. Anonymous (privacy) coins are banned outright. A separate stablecoin framework that entered force on January 1, 2026 created the first legally recognised payment-use crypto class in the country, and also authorised the issuance and trading of tokenised stocks and bonds by Uzbek-registered entities on licensed platforms.

Tax Treatment

Uzbekistan operates one of the most favourable crypto tax regimes in Central Asia. Personal income tax on cryptocurrency gains, including crypto-to-fiat conversions, crypto-to-crypto swaps, staking rewards, and NFT sales, is set at 0% when transactions are routed through a NAPP-licensed domestic provider. There is no capital gains tax on crypto disposals, and digital assets are not subject to wealth tax or inheritance tax.

Licensed VASPs enjoy VAT and corporate profit-tax relief extended through January 1, 2028 under Presidential Decree No. UP-229, signed on December 27, 2024, which also imposed a moratorium on VAT and income tax rate increases across the economy for that period. Mining is exempt from corporate income tax if the operator is registered with NAPP. The Ministry of Finance has been tasked under the 2025-2027 Budget Memorandum with drafting a phased taxation model, signalling that the current zero-rate window is transitional rather than permanent.

Regulatory Oversight

The National Agency for Perspective Projects (NAPP), Oʻzbekiston Respublikasi Prezidenti huzuridagi Loyihalarni boshqarish milliy agentligi, reports directly to the President and serves as the sole licensor and supervisor for all crypto-asset service providers. NAPP issues licences across four categories: crypto exchange, crypto store (over-the-counter), crypto depository (custody), and mining pool. The licensing procedure is governed by NAPP Order No. 3380 of August 15, 2022, with trading rules set by the companion NAPP Order No. 3379 of the same date.

The Central Bank of Uzbekistan does not licence VASPs but oversees banking supervision, jointly administers the 2026 stablecoin sandbox with NAPP, and is piloting a wholesale “digital som” central bank digital currency for interbank settlement. No retail CBDC launch is committed. Enforcement support comes from the General Prosecutor’s Office, the Ministry of Internal Affairs, the State Security Services, and the Financial Monitoring Department under the Ministry of Finance, which acts as the financial intelligence unit.

Business Environment

Banking Relationships

Domestic banks are permitted to serve licensed crypto-asset service providers, and the regulatory framework explicitly carves crypto-related transactions out of standard currency-control restrictions for licensed entities. All mining proceeds, including revenue from foreign sales, must be repatriated through Uzbek banks, reflecting a deliberate capital-control design. An open banking framework introduced in 2026 standardises data exchange between banks, payment processors, and fintech firms, intended to further smooth interactions with crypto businesses operating inside the licensed perimeter.

Innovation Support

Uzbekistan combines strict licensing with active innovation incentives. NAPP administers a regulatory sandbox that grants pilot participants tax exemptions and operational flexibility for up to three years. IT Park Uzbekistan, the country’s flagship technology zone, offers a flat 7.5% personal income tax rate for resident company employees, low dividend taxation, and customs and VAT benefits, with privileges for export-oriented residents extended through 2040.

The April 2026 Besqala Mining Valley special economic zone in Karakalpakstan, established by Presidential Resolution PQ-143, offers a full tax holiday on corporate income, property, and land taxes through January 1, 2035. Zone residents pay a 1% monthly fee on gross mining revenue to the zone directorate rather than standard taxes. Unlike prior policy that favoured solar-only operations, Besqala permits renewables, hydrogen, and grid power at the higher tariff structure, and requires integration with the Automated System for Accounting and Control of Electricity (ASKUE). The broader “Digital Uzbekistan 2030” programme provides the overarching policy umbrella.

Crypto License in Uzbekistan

All entities offering virtual asset services to Uzbek users must hold a licence issued by NAPP. Only legal entities resident in Uzbekistan, registered as an LLC or joint-stock company, are eligible to apply. The regime covers four licence categories, each with dedicated technical and operational requirements set out in NAPP orders adopted between 2022 and 2024. Since January 1, 2023, Uzbek residents may only use NAPP-licensed domestic providers for any crypto transaction; foreign platforms are barred from serving Uzbek residents and face criminal enforcement for non-compliance.

Licensing Requirements

Applicants must meet financial, technical, and governance thresholds before submitting to NAPP. The minimum statutory capital is 30,000 minimum monthly wages, approximately USD 300,000 as of 2025, deposited in a licensed Uzbek bank. An initial licensing fee of approximately USD 51,400 is payable on application. Directors and compliance officers must hold verified qualifications in fintech, crypto, or related fields; NAPP assesses competencies but does not require local citizenship for management roles.

Technical requirements include an automated AML/KYC transaction monitoring system, regular internal audits, and reporting to NAPP in line with FATF recommendations. Crypto-asset service providers must store transactional data for at least five years. Exchanges are further required to host servers in Uzbekistan and maintain a segregated custody structure for client assets under NAPP Order No. 3380.

Authorized Activities

A crypto exchange licence covers buying, selling, and exchanging crypto-assets on an electronic platform, including crypto-to-fiat and crypto-to-crypto operations. A crypto store licence covers over-the-counter purchase and sale transactions. A crypto depository licence covers safekeeping and custody of digital assets on behalf of clients. A mining pool licence covers operation of pooled mining infrastructure; individual mining operations are separately registrable under NAPP without a full VASP licence. The 2026 stablecoin and tokenised securities framework added two emerging activity categories, with approved participants allowed to issue payment stablecoins and tokenised equities or bonds through licensed platforms.

Notable licensed operators include UzNEX, the first NAPP-licensed exchange (owned by Kobea Group); Coinpay LLC, which also hosts Binance’s re-entry into the Uzbek market from January 2025 following enforcement action; and Asterium. The NAPP public register lists more than ten licensed crypto stores including Paynet Crypto, Crypto Express, and Crypto Trade Net, as well as several custody providers including Lockton Hub and JapanDXT.

Application Process and Timeline

Applications are submitted to NAPP by email to info@napp.uz, by post to the agency’s registered address at Nukus Street 22, Mirabad District, Tashkent, or in person. NAPP targets a decision within 20 working days of receiving a complete application. After licence issuance, operators must submit annual financial reports and external audit opinions to NAPP, maintain the minimum capital at all times, and notify NAPP of any material changes to ownership, management, or technical infrastructure.

The enforcement posture tightened substantially in 2024 when NAPP conducted proactive inspections of foreign crypto exchanges serving Uzbek residents and brought a fine and civil lawsuit against Binance for operating without a local licence. That action, and the April 2024 criminal penalties for unlicensed activity, underline that the licensing requirement is actively enforced rather than merely declared.

Market Characteristics

Adoption Patterns

Crypto adoption in Uzbekistan has grown rapidly under the licensed framework. Transaction volume through licensed providers exceeded USD 1 billion in 2024, driven by remittance flows, a young technically literate workforce, and the deliberate policy decision to channel activity into supervised domestic venues rather than push it offshore. Independent global adoption indices have consistently placed Uzbekistan among the more active markets in Central Asia. The resident-only domestic trading rule, in force since January 2023, has concentrated measurable volume inside the licensed perimeter while also creating a clear audit trail for regulators.

Industry Focus

The licensed market is structured around four pillars: exchanges, OTC crypto stores, custody providers, and mining pools. Mining has become a defining industry, supported by the existing NAPP mining registration regime, relatively low-cost renewable energy potential, and the Besqala Mining Valley zone that entered force in April 2026. The first formal NAPP mining permit was issued to NexaGrid in the Bukhara region in February 2025. IT Park residency anchors a growing fintech and blockchain development sector, while the 2026 stablecoin and tokenised securities framework opens regulated space for payment-token issuers and tokenised capital markets platforms.

Regulatory Evolution

Uzbekistan’s trajectory has moved steadily from cautious recognition in 2018 toward a fully built-out licensing regime with active criminal enforcement against unlicensed activity. The 2026 stablecoin and tokenisation rules, the Besqala mining zone, and the Central Bank’s wholesale digital som pilot collectively mark a shift from experimentation toward institutionalisation of digital asset markets.

On the AML front, Uzbekistan is a member of the Eurasian Group on Combating Money Laundering and Financing of Terrorism (EAG), the FATF-style regional body for Central Asia and neighbouring states. The 2023 EAG follow-up report upgraded several FATF Recommendations, including Recommendations 6, 7, and 22, to Largely Compliant, and moved Uzbekistan from enhanced to regular follow-up reporting. A remaining structural gap is the Financial Monitoring Department’s pending Egmont Group membership, which would expand cross-border financial intelligence exchange. Domestic policy signals indicate that the current zero-rate tax window will eventually give way to a phased taxation model, and the resident-only domestic trading requirement is expected to remain a defining feature of the framework for the foreseeable future.