Uzbekistan reportedly banned the purchase of Bitcoin

Local media reports that the Uzbek government has implemented a prohibition on the‘Purchase of cryptocurrencies. Citizens would nevertheless be allowed to resell their digital coins.

While theUzbekistan seemed rather lenient with this new asset class, the government would have suddenly decided to prohibit citizens from buying cryptocurrencies like Bitcoin, including on licensed local crypto exchanges, according to FinanceMagnates.

The ban would only affect the purchase and not the resale of digital tokens. Holders must, however, prove that their tokens were acquired legally to be allowed to resell them, specifies several Uzbek newspapers.

This type of measure would nevertheless be quite ineffective. Crypto-traders can indeed use VPN and P2P trading services to continue trading anonymously. This is particularly the case in China, where bitcoin trading was banned in late 2017.

a sudden change of direction

In recent years,Uzbekistan had been pro-crypto compared to its Central Asian neighbors, in particular by implementing a system of licensing for the country’s cryptocurrency exchange platforms. In addition, the taxation for this type of investment has so far been very advantageous.