Uzbekistan taps Tether to boost crypto, blockchain development and regulation

Stablecoin issuer Tether Limited has entered a Memorandum of Understanding (MOU) with the Republic of Uzbekistan’s National Agency of Perspective Projects (NAPP) to develop a regulatory and legal framework for digital assets in the country, according to a March 7 press release.

NAPP is the primary government agency overseeing crypto regulation and development, according to the release.

The agreement signifies a strategic effort to make Uzbekistan a central hub for blockchain and peer-to-peer telecommunication technologies, aiming to spark innovation and economic growth within the region.

Regulatory framework for crypto

A primary focus of the collaboration is to support the creation of a legal framework and regulatory policies conducive to the growth of crypto and other digital assets in Uzbekistan.

This includes facilitating the development and implementation of a digital currency, exploring asset tokenization mechanisms, and enhancing the country’s digital currency payment infrastructure for more efficient transactions.

Additionally, Tether and NAPP aim to develop a robust, independent communication and financial system that would enable cheaper, faster, and more secure transactions.

The partnership also emphasizes educational initiatives, engaging local academic institutions to develop programs that enhance understanding of blockchain technology, stablecoins, and their applications.

These educational efforts are intended to equip individuals with the knowledge and skills necessary for success in the evolving digital asset industry.

Uzbekistan aims to raise standing

The collaboration between Tether and the Republic of Uzbekistan represents a concerted effort to strengthen the blockchain ecosystem, foster innovation, and promote Uzbekistan as a global leader in blockchain and peer-to-peer technologies.

This partnership is expected to benefit the local startup community but also enhance Uzbekistan’s attractiveness as a destination for technology companies and professionals worldwide.

NAPP director Lee Dmitriy Romanovich said:

“A well-integrated and responsibly introduced blockchain ecosystem can have a profound impact on improving the lives of all Uzbekistan citizens.”

Uzbekistan began efforts to regulate the digital assets industry in 2022 through a directive that introduced a preliminary regulatory framework for the industry and included establishing the NAPP.

Since then, the country has taken significant steps to integrate digital assets into its economy while ensuring a balanced regulatory framework.

Uzbekistan’s regulatory framework legally recognizes crypto but does not consider it legal tender. The country permits trading and other activities exclusively through licensed local virtual asset service providers (VASPs) under stringent guidelines.

Additionally, the country has established a special zone that offers crypto-related firms tax benefits and streamlined regulatory procedures to attract investments.