Binance is back in Uzbekistan after three years of being blocked

Binance has reached an official agreement with Uzbek regulators / Photo: REUTERS/Dado Ruvic, photo editor: Milosh Muratorvskiy

Binance, the world’s largest cryptocurrency exchange, is back in Uzbekistan after being blocked in 2022. From now on, Uzbekistanis can deposit money into their Binance accounts and withdraw their assets through Coinpay, Binance’s licensed partner in Uzbekistan, the exchange said in a statement.

The cryptocurrency exchange has laid the groundwork for its legal operations in Uzbekistan by signing an agreement with the National Agency for Perspective Projects (NAPP) and meeting all regulatory requirements. Transactions on Binance may be conducted using banking cards and payment systems via coinpay.uz.

“This partnership underscores Binance’s commitment to regulatory compliance and fostering a safe, innovative environment for the crypto industry’s growth. We are excited to resume our operations in Uzbekistan and contribute to the growth and development of the crypto industry in the region,” said Kyrylo Khomyakov, Binance’s regional head for Central and Eastern Europe, Central Asia and Africa.

In response, the NAPP stated that the system will be launched once all modules are integrated with national payment systems. Both Coinpay and Binance have promised to provide further details on the issue.

Coinpay has been officially operating in Uzbekistan since November 2023, the year when the country allowed the purchase, sale and exchange of cryptocurrency exclusively through national service providers. The registered capital of the company, headed by Alexander Kim, is $662,302.

Like many other cryptocurrency exchanges, Binance was blocked in Uzbekistan in the summer of 2022 due to the absence of an official license. In early 2024, an Uzbek court fined the platform $8,663 for violating the country’s legislation on cryptocurrency asset turnover.

In Kazakhstan, Binance has been registered at the Astana International Financial Centre (AIFC) since September 2022. The opening of the company’s regional cryptocurrency hub in Kazakhstan was discussed by Binance Founder Changpeng Zhao and President Kassym-Jomart Tokayev earlier that year.

The turnover and issuance of cryptocurrencies in Kazakhstan are allowed only within the experimental legal regime under AIFC jurisdiction. However, unlike in Uzbekistan, Kazakh or foreign companies do not need significant resources to obtain a license from the AIFC. Moreover, these firms can offer FinTech and RegTech services without meeting all regulatory requirements immediately.