Uzbekistan Proposes Record Fines for Unlicensed Crypto Companies

Foreign companies operating in Uzbekistan's crypto-asset market without a license could face fines of up to UZS 11 billion under proposed rules. The National Agency for Perspective Projects (NAPP) has published a draft regulation outlining the system of fines and penalties.

The maximum fine for foreign legal entities operating without a license would be equivalent to 25,000 base calculating amounts (BCAs), which translates to UZS 10.3 billion at the current rate. This amount will increase to UZS 11 billion after September 1, when the BCA increases.

The draft regulation also proposes fines for violations related to personal data storage and processing, anti-money laundering legislation, and advertising rules governing crypto-asset services. Fines for these types of violations range from approximately UZS 4.12 billion to UZS 6.18 billion, depending on the severity of the offense.

The NAPP director or an official acting in that capacity would determine the amount of a penalty based on various factors, including the duration and systematic nature of the violation, its impact on participants in crypto-asset transactions, and any corrective measures taken by the company.