The Binance cryptocurrency exchange will launch operations in Uzbekistan through a local partner, the National Agency for Prospective Projects (NAPP) said.
NAPP stated that it had reached an agreement with Binance to service clients in Uzbekistan. Its activities will be carried out through a local partner - Coinpay LLC, operating in accordance with the legislation of the republic.
How will Binance operate in Uzbekistan?
Coinpay is an official in the field of crypto asset operator which holds licenses for crypto exchange and crypto store operations.
For Uzbekistan residents, access to the Binance platform will be provided through www.coinpay.uz. Users will be able to deposit and withdraw funds in national currency using bank cards and national payment systems.
The launch of the system is reportedly due after the completion of the integration of all modules of partner platforms, including connection to national payment systems. Information about the launch will be published on the official resources of CoinPay and Binance.
In January 2024, the Agency fined Binance for violating crypto-related Uzbek laws. Following the trial, which took place from March 26 to June 7, the court ruled the crypto exchange to pay a fine of 300 basic calculation units (BCU), equaling 112 million soums, or $8.6 thousand. Binance complied with all the court's demands and paid the funds to the state budget.
The Agency underscored that from January 1, 2023, individuals and legal entities of Uzbekistan can carry out transactions with crypto assets (purchase, sale, exchange) exclusively through national providers.
In the summer of 2022, Binance planned to enter the Uzbek market, but this attempt was unsuccessful. First Deputy Director of NAPP Vyacheslav Pak said in February 2023 that the conditions that Binance put forward for working in Uzbekistan were unacceptable at that time.
“They are requesting to legalize p2p transactions. In the countries where they received a license, I will not name them, they Binance did not bring in servers or personnel. The platform simply conducts p2p transactions, Binance earns on arbitrage, and cash settlements are carried out between the individuals themselves. And who controls this? What money is used to pay? We cannot [accept] these conditions and will not legalize [p2p transactions] until we understand how to control them,” the regulator’s representative said.
Peer-to-peer or p2p transaction is a direct sale and purchase of cryptocurrency without the participation of a third party. To ensure the security of transactions, Binance blocks funds or cryptocurrency until the parties confirm the transaction.
In August 2022, Uzbekistan blocked access to the websites of eight crypto exchanges, including the most popular ones - Binance, Kraken, FTX and Huobi Global.
