[2021-03-10Uzbekistan warns citizens against using unauthorized cryptocurrency e

[Woodie]

Uzbekistan warns citizens against using unauthorized cryptocurrency exchanges

The Uzbekistan government published and blacklisted six unauthorized cryptocurrency exchanges and warned citizens from using such exchanges, according to a Bitcoin.com report. The National Agency of Project Management under the President of Uzbekistan detected an increased number of unofficial crypto exchanges during a monitoring campaign. These trading platforms do not have their offices in the country and are registered in other jurisdictions and their servers are located abroad. They offer transactions and trading in crypto assets, and collect personal information of Uzbek citizens. The official announcement published on the Uzbek press website cautioned citizens against such platforms as they don’t bear any responsibility for cryptocurrency transactions among various parties. The unlicensed platforms do not ensure proper storage and confidentiality of personal data of consumers either. Their legitimacy can't be guaranteed, the official notice emphasised and citizens should stay informed to protect themselves from frauds.

Similar services are also being offered through Telegram bots and groups too. The providers of such platforms mostly remain anonymous and can quickly delete the traces when suspected to be caught. Uzbekistan got its first-ever licensed crypto exchange Uznex in January 2020, operated by Korean company, Kobea group.

https://m.timesofindia.com/business/cryptocurrency/blockchain/uzbekistan-warns-citizens-against-using-unauthorized-cryptocurrency-exchanges/amp_articleshow/86721666.cms

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[jossiel]

IMHO. It's actually a good policy if they want to let all of their people trade only with the exchange that's registered under their government.

They just want to have these exchanges register under their government so they have the advantage of taxing these possible exchanges that might start their office in their country.

[bryant.coleman]

IMHO. It's actually a good policy if they want to let all of their people trade only with the exchange that's registered under their government.

No. It is up to the user to decide whether they want to trade in an exchange that is located within Uzbekistan, or a centralized exchange that is based outside (or to use a P2P platform). Anyway, it is good to see the Uzbek regime not going too hostile on the cryptocurrency trade, similar to the case with China. Also, the warning from the National Agency of Project Management sounds OK to me. Unlike the case with Bangladesh and some of the other countries, they are not threatening the cryptocurrency users with jail term and fines.

[NeuroticFish]

IMHO. It's actually a good policy if they want to let all of their people trade only with the exchange that's registered under their government.

Using "agreed" exchanges means that they paid the correct taxes and the government may receive KYC info from those for example. It doesn't necessarily mean they are unsafe.
But we are used with governments' warnings, don't we? Aren't so many governments and central banks telling that Bitcoin is risky and should not be bought/used?

Keep in mind that (way too) many declare the things that suit them best, not necessarily what's good for you.
But you can take those warnings serious or not. Best is to read around more, from more sources, as reputable as you can find (although this can also be debatable).

[jossiel]

IMHO. It's actually a good policy if they want to let all of their people trade only with the exchange that's registered under their government.

No. It is up to the user to decide whether they want to trade in an exchange that is located within Uzbekistan, or a centralized exchange that is based outside (or to use a P2P platform). Anyway, it is good to see the Uzbek regime not going too hostile on the cryptocurrency trade, similar to the case with China. Also, the warning from the National Agency of Project Management sounds OK to me. Unlike the case with Bangladesh and some of the other countries, they are not threatening the cryptocurrency users with jail term and fines.

Yeah it is understandable that it's still up to the user to decide but it's the Uzbekistan's government that's also encouraging these businesses to be  registered under them. Since most exchanges these days, the trusted ones are centralized, they will have no problem if they aim to target citizens there.

IMHO. It's actually a good policy if they want to let all of their people trade only with the exchange that's registered under their government.

Using "agreed" exchanges means that they paid the correct taxes and the government may receive KYC info from those for example. It doesn't necessarily mean they are unsafe.
But we are used with governments' warnings, don't we? Aren't so many governments and central banks telling that Bitcoin is risky and should not be bought/used?

That's true, they've been giving warnings and it's just a matter of the process from this country and as usual, their citizens, their rule.

They just want to have these exchanges register under their government so they have the advantage of taxing these possible exchanges that might start their office in their country.

But we actually don't know intention behind the warning, especially if we consider internet censorship on Uzbekistan.

I'm not aware of the policy there but there's always the gray area for this matter.

[bbc.reporter]

I have noticed that the statement unauthorized by the government is losing its value and meaning hehehe. This is because authorized is inconvenient, has lower liquidity, requires transparency and it is more expensive because of taxes.

[SFR10]

These trading platforms do not have their offices in the country and are registered in other jurisdictions and their servers are located abroad.

I wonder why most governments are obsessed with various websites and apps that don't have their servers in their countries?!
^{- Oops! I forgot they always want to have full access to literally everything!}

The unlicensed platforms do not ensure proper storage and confidentiality of personal data of consumers either.

I wish they would've at least cited the reasons for coming up with that conclusion!
^{- I'm not familiar with the exchanges in question and despite agreeing with some of the stuff that they've mentioned [e.g. "Telegram bots and groups"], It's quite obvious that they have ulterior motives!}

Uzbekistan got its first-ever licensed crypto exchange Uznex in January 2020, operated by Korean company, Kobea group.

The platform allows only selling of cryptocurrencies within the regulatory framework.

Until they could offer more than the part I've bolded, most of their citizens would probably continue to look for alternative routes.
For those that are interested in knowing the names of the exchanges in question, you can refer to "this link".

[Ozero]

IMHO. It's actually a good policy if they want to let all of their people trade only with the exchange that's registered under their government.

No. It is up to the user to decide whether they want to trade in an exchange that is located within Uzbekistan, or a centralized exchange that is based outside (or to use a P2P platform). Anyway, it is good to see the Uzbek regime not going too hostile on the cryptocurrency trade, similar to the case with China. Also, the warning from the National Agency of Project Management sounds OK to me. Unlike the case with Bangladesh and some of the other countries, they are not threatening the cryptocurrency users with jail term and fines.

I fully support this approach of the government of Uzbekistan in relation to cryptocurrency exchanges unregistered in this country. The state should put things in order here and warn its citizens about the presence of exchanges on the territory of the country that may turn out to be fraudulent and at any time stop its activities, taking with it all the cryptocurrency that citizens sent to this exchange. After all, if fraud happens, then people file complaints with law enforcement agencies, and it will be almost impossible to identify the criminals. However, anyone can ignore such recommendations and rely only on their own luck.