Crypto Asset Trading in Uzbekistan

The development of the digital economy and blockchain technologies has compelled states to design legal mechanisms for regulating crypto assets. In Uzbekistan, one of the key measures was the adoption of the Rules for Conducting Crypto Asset Trading on Crypto Exchanges, approved by the National Agency for Perspective Projects. This regulatory act defines the functioning of crypto exchanges, the rights and obligations of their participants, as well as state guarantees and restrictions in the field of digital financial instruments.

Basic Definitions

The Rules establish basic concepts, including:

• crypto assets (including secured and unsecured tokens, non-fungible tokens (NFTs), and stable tokens);
• clients and participants of trading;
• the clearing and settlement chamber (CSC);
• the electronic platform of the crypto exchange as a software and technical complex for conducting trades.

Special attention is given to listing and delisting, initial token offerings, as well as the prevention of price manipulation and the use of insider information.

Obligations of the Crypto Exchange

According to the Rules, the crypto exchange must:

• ensure the stability and information security of the platform;
• separately account for and store client funds and the exchange’s own funds;
• conduct backup of all transaction data;
• ensure the execution of client orders and transparency of trading;
• improve staff qualifications in the area of AML/CFT;
• comply with advertising legislation on crypto assets.

Thus, the exchange functions not only as a trading platform but also as a subject of financial monitoring.

Rights of Residents and Non-residents

Residents of the Republic of Uzbekistan are entitled to carry out all types of crypto asset trading in the national currency. Interaction with non-residents is limited — only the sale of crypto assets for foreign currency is permitted. Furthermore, residents are allowed to exchange NFTs on foreign platforms, with subsequent realization of the acquired assets through registered service providers in Uzbekistan.

Prohibitions and Restrictions

The Rules establish strict bans on:

• issuance and circulation of stable tokens;
• issuance and placement of unsecured tokens;
• conducting crypto asset trading outside of registered service providers.

These measures are aimed at reducing financial risks and protecting consumers, but they also restrict innovative development in the field of stablecoins and DeFi.

Clearing and Settlement Operations

Settlements for transactions are carried out through the CSC, which ensures the accounting of obligations, settlements, and the maintenance of virtual accounts. Clients are assigned a unique individual user number (IUN). Storage of information and reports on transactions for at least five years is mandatory.

Mechanisms for Protecting Client Rights

The Rules provide for:

• mandatory identification of participants;
• storage of audio and video recordings of negotiations;
• provision of reports to clients and the authorized body;
• liability of the exchange for organizing transactions, especially on the direct trading platform.

Thus, a comprehensive protection of investors’ rights and interests is ensured.

Institutionalization of the Crypto Market

The adopted Rules mark an important stage in the institutionalization of the crypto market in Uzbekistan. On the one hand, they create a legal framework for the functioning of crypto exchanges and investor protection; on the other hand, they impose significant restrictions (such as the ban on stablecoins and limitations on non-resident transactions), which may slow down the development of innovative financial instruments.

In the future, a balance in regulation will be required: combining national interests protection with the promotion of digital innovation. For this, gradual liberalization in the circulation of new types of tokens, development of self-regulation mechanisms, and international cooperation in the supervision of crypto markets may be necessary.

Rights and Obligations of Crypto Asset Market Participants

Participant	Main Rights	Main Obligations
Crypto Exchange	• Organization of trades (spot, margin, direct transactions). • Establishing listing/delisting rules. • Acting as an intermediary (mandate, commission). • Providing its own assets to clients on a repayable basis.	• Ensure platform stability and information security. • Separate accounting and storage of client and exchange funds. • Backup all transaction data. • Control insider information and prevent price manipulation. • Comply with AML/CFT and advertising requirements. • Provide reports to clients and the authorized body.
Clients (residents and non-residents)	• Residents — right to conduct all types of trades in national currency. • Right to exchange NFTs on foreign platforms. • Right to receive reports on their transactions. • Ability to request exchange mediation.	• Undergo mandatory identification (KYC). • Not create more than one account. • Confirm their orders with the exchange. • Bear the risk of choosing the crypto asset to acquire.
Clearing and Settlement Chamber (CSC)	• Opening and maintaining clients’ virtual accounts. • Determining and offsetting mutual obligations. • Deducting fines and fees without acceptance.	• Conduct settlements only for registered transactions. • Keep separate accounting of client obligations. • Maintain confidentiality of information. • Store clearing data for the established period.
Authorized Body (NAPP of Uzbekistan)	• Request data from the exchange on violations. • Monitor compliance with legislation. • Grant permissions and set requirements.	• Develop and improve the regulatory framework. • Oversee the activities of exchanges.