Binance, the world’s leading cryptocurrency exchange, was fined for operating in Uzbekistan without the appropriate license. Information about this was disclosed by the country’s National Agency for Advanced Projects (NAPP). The fine for Binance was 102 million soums (approximately $8,200). NAPP, which serves as the main regulatory body, emphasized that the exchange, which is not a legal entity of Uzbekistan, provides cryptocurrency trading services for citizens of the country.
In Uzbekistan, since 2019, there has been a ban on the use of cryptocurrency as a means of payment. According to NAPP, the Binance exchange also violates Uzbek laws in the field of preventing the laundering of illegally obtained funds, the financing of terrorism and the proliferation of weapons of mass destruction. Binance has not yet commented on this decision.
Uzbekistan provides for fines of 300 basic calculation units (about $8,150) for illegal trading of crypto assets or obtaining a license on the basis of forged documents. For illegal mining or obtaining permission to mine using fake documents, a fine of 150 basic calculation units ($4075) is provided.
Recently, the Uzbek government gave permission to two private banks – Ravnaq Bank and Kapital Bank – to issue virtual cryptocurrency cards. In June of this year, the first license to operate a crypto depository was issued. It was received by a subsidiary of the brokerage company Lockton Solution LLC-FZ from the UAE.
