Uzbekistan amends law making it illegal for citizens to buy crypto-currency

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Quote from: TravelMug on December 25, 2019, 05:27:17 AM

Very interesting turn of events, just last September 2018, Uzbekistan Looks to Lure Crypto Exchanges With New Tax Benefits.

But now they're turning their backs and making a U-turn? I guess they are looking at the Hong Kong crisis as well and thinking that Uzbeks might turn to crypto to hedge their wealth and the government doesn't want to allow it obviously.

Good analysis, that could be the reason, and this could hamper the growth of Cryptocurrency in some hostile regions like Hongkong and now Iran, this is the government preparation for if there is unexpected crisis that may happen, to a country that might implement it, but they are also refusing to accept the technology features that Cryptocurrency brings to modern society.

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Quote from: hugeblack on December 24, 2019, 02:55:57 AM

In what appears to be the product of action and reaction from civil unrest, the government in Uzbekistan decided to prevent its citizens from purchasing any form of cryptocurrency in the country. It also only allowed them to sell coins that records could prove legally. So that the currency not legally registered is illegal and therefore cannot be sold.

It is a reflection by President Mirziyoyev that authorized crypto-currency as a legal in 2018.

Source and Read more ----> https://xitheon.com/knowledgebase/17/Uzbekistan-amends-law-ILLEGAL-for-citizens-to-buy-crypto-currency-LEGAL-to-sell.html

And where is the enforceability?

I'm sure that anyone with a brain can circumvent all of these regulations by simply selling their coins on a p2p platform like Localbitcoins. Better yet, they could bypass the platform altogether if they have real life contacts that sell and buy btc.

This is the issue with BTC crackdowns. They are uncalled for in the majority of the cases and they have no enforcability.

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Quote from: hugeblack on December 24, 2019, 02:55:57 AM

In what appears to be the product of action and reaction from civil unrest, the government in Uzbekistan decided to prevent its citizens from purchasing any form of cryptocurrency in the country. It also only allowed them to sell coins that records could prove legally. So that the currency not legally registered is illegal and therefore cannot be sold.

Not sure what is the reason for the civil unrest and why that made them to turn the decision upside down from what they took last year, so basically they banned anyone from purchasing the coins and those who are holding the coins can sell those in legal exchanges after undergoing the necessary KYC, basically they are pushing the crypto traders underground and people who trade will continue the P2P model and there is nothing the government can do about it.

Quote from: TravelMug on December 25, 2019, 05:27:17 AM

Very interesting turn of events, just last September 2018, Uzbekistan Looks to Lure Crypto Exchanges With New Tax Benefits

If the news is true then the government shows the entire investment community globally that how unreliable they can be and Uzbekistan should be avoided for business investment.

audaciousbeing

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Quote from: hugeblack on December 24, 2019, 02:55:57 AM

In what appears to be the product of action and reaction from civil unrest, the government in Uzbekistan decided to prevent its citizens from purchasing any form of cryptocurrency in the country. It also only allowed them to sell coins that records could prove legally. So that the currency not legally registered is illegal and therefore cannot be sold.

It is a reflection by President Mirziyoyev that authorized crypto-currency as a legal in 2018.

Source and Read more ----> https://xitheon.com/knowledgebase/17/Uzbekistan-amends-law-ILLEGAL-for-citizens-to-buy-crypto-currency-LEGAL-to-sell.html

This further law for me is a response to the abuse that have happened to the 'free hand' the government gave to crypto enthusiasts in 2018 and now they are looking at various ways to curtail the abuse without going the route of permanent ban or repeal of the law and then losing out entirely on the benefit inherent in the making of the law in the first base.

The take out here is simple which is there is still room to function now is to do it within the procedures laid down by the government so as not to be used as a reference point for punishment to ensure other people compliance with the law.

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Quote from: hugeblack on December 30, 2019, 01:30:47 AM

Quote from: joelsamuya on December 26, 2019, 09:22:16 AM

Such a sudden reversal of a policy is a signal to investors that the government could not be trusted and that there is no stability at all.

Security solutions often backfire, so I hope it is fake news, otherwise government confusion in such a decision will cost the industry in that country a lot. The measure may be part of emergency orders to control the local exchange rate, but the effect will be negative in the future. I forgot to add that the regulatory agency still allows their coins to be sold on two platforms. Those with a corresponding license.

Assuming that this is not just another fake news, this can be damaging in the eyes of prospective investors inside and outside the country. The thing is that the government has this tendency to easily decide on something that can affect a certain industry. Maybe the country should have an established laws and regulations specific for difficult times or if there will be some form of a crisis. The cryptocurrency industry should not be treated as just another industry that can be dispensed with or sacrificed if people in the government think that this can be a big tool that can inconvenient them.

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Quote from: joelsamuya on December 26, 2019, 09:22:16 AM

Such a sudden reversal of a policy is a signal to investors that the government could not be trusted and that there is no stability at all.

Security solutions often backfire, so I hope it is fake news, otherwise government confusion in such a decision will cost the industry in that country a lot.
The measure may be part of emergency orders to control the local exchange rate, but the effect will be negative in the future.
I forgot to add that the regulatory agency still allows their coins to be sold on two platforms. Those with a corresponding license.

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Will have to look at the exact legal text in local language but banning the purchase and NOT the selling just looks like a way to protect the Uzbek currency is all. Think about it. How do you allow sale but not purchase? Unless you sell outside the country and get in foreign dollars?

But good luck preventing citizens from getting bitcoin anyway. P2P traders will be savvy enough to not mark trades as anything related to crypto buys.

altcointalk14

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Don’t worry many more will follow this. Bitcoin is never in good books of governments and sooner or later they will ban unregulated cryptocurrency. In countries like Uzbekistan where laws are fragile, its very easy to do money laundry, drug trafficking and other illegal acts easily with bitcoin. Government taking necessary step in advance to avoid loss.

joelsamuya

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This latest development is not good for this country which I think has good plans to be a very crypto-friendly country so as to attract new fintech players into its fold. Let's hope that this is just a temporary situation and once things are returned to normal then the government will once again let the marketplace be uninterrupted. Such a sudden reversal of a policy is a signal to investors that the government could not be trusted and that there is no stability at all. I hope that there will be a big backlash to this new regulation and that the protests will be inspiring many to even buy more cryptocurrency away from the watchful eyes of those in the government.

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Really hate how this so-called greedy politicians in form of "Governments" are trying to control each and every aspect of the civilians. Technically one buying or selling cryptocurrencies is not a crime Angry

It's my goddamn money so one shouldn't dictate how i spend it as long as am not carrying out any crime.

Instead of fight corrupt folks, climate change, famine and poverty, the energy is being diverted into fulfilling their personal agendas

1Referee

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It's counterproductive. It makes far more sense to firmly regulate the space as a whole and have that control. If you prohibit people from buying into crypto you can be sure that they will get their crypto from sources that are nearly impossible to keep track of. Great for the crypto ecosystem there because it is invented to tackle middlemen.

On the other hand, it might just as easily be an attempt to temporarily halt the growth of crypto inside their country. Governments have a hard time catching up with how quick things change and progress in crypto land, so when they make it harder to buy into it through the more convenient central routes, the pace of the growth will decrease and they have a better opportunity of catching up.

Time will tell how everything will play out, but I'm confident that it's not the end.

gentlemand

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And yet a couple of days ago the Uzbek government themselves issued their first exchange licence - https://napm.uz/ru/press_center/news/vydana-pervaya-litsenziya-na-osushchestvlenie-deyatelnosti-kripto-birzh/

I will guess that once you remove the worthless crypto press guessing it'll be the bog standard central bank statement saying you're on your own and a probable restriction on using it as a means of payment.

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Uzbekistanis are having a protest against their natural gas situation and then suddenly the Uzbekistan government will ban the buying of cryptocurrency as an answer? Are they just trying to find a reason on banning the whole industry without thinking of any kind of connection whatsoever in the whole situation? For me this is the kind of government where you know your country is headed to its destruction since the ones heading it are in a form of a dictatorial government where they just do what they favor them or at least be unfavorable for their citizens. This must serve as a wake up call for them in their upcoming election to vote the right person to be elected so this kind of dumb shit would be prevented from happening.

TravelMug

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Very interesting turn of events, just last September 2018, Uzbekistan Looks to Lure Crypto Exchanges With New Tax Benefits.

But now they're turning their backs and making a U-turn? I guess they are looking at the Hong Kong crisis as well and thinking that Uzbeks might turn to crypto to hedge their wealth and the government doesn't want to allow it obviously.

hugeblack

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In what appears to be the product of action and reaction from civil unrest, the government in Uzbekistan decided to prevent its citizens from purchasing any form of cryptocurrency in the country. It also only allowed them to sell coins that records could prove legally. So that the currency not legally registered is illegal and therefore cannot be sold.

It is a reflection by President Mirziyoyev that authorized crypto-currency as a legal in 2018.

Source and Read more ----> https://xitheon.com/knowledgebase/17/Uzbekistan-amends-law-ILLEGAL-for-citizens-to-buy-crypto-currency-LEGAL-to-sell.html

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