- The National Agency for Perspective Projects (NAPP) has approved two banks in Uzbekistan to issue crypto cards.
- The crypto cards will be powered by MasterCard and are expected to be released before the end of the year.
- The UzNEX card will be linked to a bank account and accessible on cryptocurrency exchanges.
Kapital Bank and Ravnaq Bank to Issue Crypto Cards to Customers by December
Kapital Bank and Ravnaq Bank have acquired approval to issue plastic crypto cards powered by MasterCard.
According to the press release, the National Agency for Perspective Projects has announced the registration of Ravnaq Bank as a participant of the Special Regulatory Sandbox Regime.
The Special Regulatory Sandbox Regime project provides for developing and implementing a crypto card called UzNEX.
The virtual crypto card will be embellished with “the functionality of automatic replenishment of a bank card account with cash through the accelerated sale of crypto-assets located in the crypto-wallet of a partner opened on the crypto-exchange for settlement operations.”
Both Kapital Bank and Ravnaq Bank are required to launch the crypto card before the end of December.
Ravnaq Bank and Kapital Bank are part of the three participants in the special sandbox project.
The participants of the National Sandbox project are expected to test the card for the smooth integration of the automated banking system, the information system of the crypto exchange, and other relevant processes.
The Republic of Uzbekistan took a progressive step towards crypto regulation in 2021 when it allowed its citizens to conduct crypto trades.
In 2022, Uzbekistan issued a decree that restructured the National Agency for Project Management into National Agency for Perspective Projects (NAPP).
The National Agency for Perspective Projects was established to cover crypto regulation-related projects and to adopt a special crypto regulation regime in the country.
The agency was in charge of ensuring investor protection and ensuring a unified state policy on crypto.
Uzbekistan further progressed on its crypto adoption policy by taxing salaries made from crypto at a rate of 7.5%.
The country also exempted miners from any licensing requirements.
“Miners that carry out activities using equipment and installations of solar photovoltaic stations, have the right to enjoy benefits related to taxes, customs and other preferences of renewable sources energy in the manner prescribed by legislative acts,” the decree stated.
The restructuring of the National Agency for Perspective Projects NAPP in 2022 paved the way for the first two crypto licenses in the country.
Before the reform, Uzbekistan imposed restrictions on international cryptocurrency exchanges including Binance, Huobi FTX and others.
The restrictions were made due to the violations of legislation.
According to the announcement made by the National Agency for Perspective Projects (NAPP), the crypto exchanges provided services without obtaining the required license.
“They have no legal responsibility for transactions with crypto-assets, and cannot guarantee the legitimacy of transactions, as well as the proper storage and protection of confidentiality of personal data of citizens of the Republic of Uzbekistan,” The agency said in a statement.
The issuance of crypto cards is a significant milestone in the country’s crypto regulatory policy.
