Tether Limited, the issuer of the stablecoin, has signed a Memorandum of Understanding (MOU) with Uzbekistan’s National Agency of Perspective Projects (NAPP) to collaborate on establishing regulatory and legal frameworks for digital assets in the country. This partnership, as announced in a press release on March 7, highlights NAPP’s role as the leading government body responsible for overseeing crypto regulations and development.
The agreement reflects a strategic initiative to position Uzbekistan as a focal point for blockchain and peer-to-peer telecommunication technologies. The aim is to stimulate innovation and drive economic growth within the region.
Cryptocurrency regulatory framework
The main goal of the collaboration is to assist in establishing a legal framework and regulatory policies that promote the growth of cryptocurrencies and other digital assets in Uzbekistan. This involves facilitating the creation and enforcement of regulations for digital currencies, exploring methods for tokenizing assets, and improving the country’s digital currency payment infrastructure to streamline transactions.
Furthermore, Tether and NAPP seek to build a robust, independent communication and financial system that would enable quicker, cheaper, and more secure transactions.
The partnership also prioritizes educational initiatives, working with local academic institutions to develop programs that enhance understanding of blockchain technology, stablecoins, and their practical applications. These educational efforts aim to provide individuals with the knowledge and skills necessary to thrive in the evolving digital asset industry.
Uzbekistan aims to enhance its reputation or improve its standing.
The collaboration between Tether and the Republic of Uzbekistan represents a concerted effort to bolster the blockchain ecosystem, foster innovation, and position Uzbekistan as a global leader in blockchain and peer-to-peer technologies.
This partnership is anticipated to not only benefit the local startup community but also enhance Uzbekistan’s appeal as a destination for technology companies and professionals worldwide.
Lee Dmitriy Romanovich, director of NAPP, stated,
“A well-integrated and responsibly introduced blockchain ecosystem can have a profound impact on improving the lives of all Uzbekistan citizens.”
Uzbekistan initiated efforts to regulate the digital assets industry in 2022 with a directive introducing a preliminary regulatory framework, which included the establishment of NAPP.
Since then, the country has taken significant strides to integrate digital assets into its economy while maintaining a balanced regulatory framework.
Uzbekistan’s regulatory framework acknowledges cryptocurrencies but does not designate them as legal tender. Trading and other activities are permitted exclusively through licensed local virtual asset service providers (VASPs) under stringent guidelines.
Moreover, the country has established a special zone offering tax benefits and streamlined regulatory procedures to attract investments from crypto-related firms.