Uzbekistan Cryptocurrency Trading: Complete Regulatory Guide for 2025

Current Overview: Legitimization Under Strict Regulation

Uzbekistan has taken an approach different from many neighboring countries by legally regulating and institutionalizing management of crypto assets. Although virtual assets are legally recognized in the country, trading and usage are subject to multiple restrictions. The key point is: while trading is permitted, it is limited to platforms with official approval from the state.

The legal foundation for cryptocurrencies in Uzbekistan stems from the Virtual Assets Law passed in 2022 and its subsequent amendments. The National Advanced Projects Agency (NAPM) is the sole regulatory authority responsible for issuing licenses and overseeing all related activities.

Trading Framework: What is Allowed, What is Prohibited

Permitted Activities

Crypto trading in Uzbekistan requires compliance with the following conditions:

• Only through local platforms: Residents can only participate in trading on domestic exchanges and exchange services licensed by NAPM. The first licensed platform is Uznex.
• Buying, selling, and holding rights: Individuals and businesses are entitled to purchase, sell, and store crypto assets, but all operations must be conducted through official channels.
• Fiat withdrawals: Converting profits into Uzbek som or other fiat currencies is feasible, but must be done via bank accounts linked to licensed platforms and in accordance with AML requirements.

Clear Restrictions

• Prohibition of use for payments: Using cryptocurrencies to pay for goods or services in Uzbekistan is illegal and not protected by law.
• Ban on access to international platforms: NAPM has the authority to block access to most international exchanges. Residents are not authorized to use overseas crypto platforms.
• Mining ban: Since 2022, cryptocurrency mining is completely prohibited in the country, mainly due to energy consumption issues.
• Mandatory identity verification: All platform transactions require mandatory KYC verification; anonymous wallets and transactions are not allowed.

Tax and Financial Obligations

Individual Investors

Income from virtual asset trading must be taxed at a standard rate of 12%. Tax obligations are borne by individuals, who are responsible for declaring their trading income.

Businesses and License Holders

Licensed crypto service providers are required to pay corporate income tax and comply with standard tax regulations such as VAT. These businesses must maintain complete accounting records and report all virtual asset transactions to tax authorities.

Licensing System and Operational Requirements

Any entity engaged in virtual asset activities must obtain a license from NAPM. Specific categories include:

• Exchange service providers (exchanges)
• Asset custody service providers (wallets, custodians)
• Asset issuance service providers (ICO/STO organizers)
• Crypto trading platforms

Violations of licensing regulations will be prosecuted under the law. NAPM also prohibits advertising for unlicensed services.

Market Status and Development Directions

Currently, the number of licensed crypto services operating in Uzbekistan is limited, but regulatory authorities are working to improve the legal framework. NAPM continues to update detailed requirements regarding security, capital adequacy, AML compliance, and reporting.

The overall strategy of the authorities is to establish a closed but controlled virtual asset ecosystem, prioritizing financial stability and consumer protection. There are no official moves to lift key restrictions such as payment bans or mining prohibitions.

Summary: An Orderly but Restricted Ecosystem

Uzbekistan’s approach reflects a clear philosophy: crypto assets can exist and be traded, but only under strict supervision by the state. Trading cryptocurrencies in Uzbekistan is legal but heavily restricted—only through licensed platforms, payment use is prohibited, and full tax obligations must be met. This is a control-centered regulatory model aimed at maximizing protection of the financial system while allowing limited market participation.