Uzbekistan’s Banks Launch Mastercard-backed Crypto Cards With Positive Move

Key Points:

• Kapital Bank and Ravnaq Bank were approved for the crypto sandbox, aligning with Uzbekistan’s pro-crypto stance.
• UzNEX cards were unveiled, merging bank accounts and crypto exchange access and launching by December 2023.
• Uzbekistan’s industry reboot was showcased through revamped regulations, spurring crypto innovation.

Uzbekistan’s strides towards embracing the crypto realm have taken a significant leap with the approval of Kapital Bank and Ravnaq Bank by the National Prospects Project Agency (NAPP).

An intriguing facet of this development is the imminent introduction of physical crypto cards backed by the global payment giant Mastercard. The crypto card, aptly named UzNEX, will not only integrate a bank account but also provide access to a cryptocurrency exchange portal, catering to the growing demand for seamless transactions.

The initiative marks a pivotal shift in Uzbekistan’s stance on cryptocurrencies, aiming to position itself as a crypto-friendly hub in Central Asia. However, the journey hasn’t been devoid of hurdles.

The government previously clamped down on unlicensed crypto activities, leading to restrictions on prominent international exchanges like Binance, FTX, and Huobi.

Interestingly, Kapital Bank and Ravnaq Bank are among the three registered entities in the national digital sandbox, symbolizing their commitment to innovating and navigating the evolving crypto landscape.

The timeline for the debut of the crypto cards is set for the culmination of 2023, a significant stride towards fostering a crypto-inclusive financial ecosystem.

Uzbekistan’s transformation has been multifaceted; where once cryptocurrency purchases were prohibited, the National Agency for Project Management (NAPM) has endeavored to turn the tide.

In 2021, the NAPM proposed revisions to the licensing framework for crypto companies, striving to ameliorate the industry’s prospects.

In the wake of these efforts, the issuance of crypto licenses to Crypto Trade NET and Crypto Market in November 2022 was a watershed moment. As the year races to a close, Uzbekistan‘s progress in embracing cryptocurrencies remains closely watched, poised on the brink of a new digital frontier.

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