Uzbekistan sets new cryptocurrency policy framework (Cryptocurrency:BTC-USD)

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Uzbekistan President Shavkat Mirziyoyev has set a regulatory framework for cryptocurrencies and tapped the Perspective Projects Agency to facilitate the decentralized space, according to a directive published April 27.

The Perspective Projects Agency, formerly known as the National Agency for Project Management, will form new crypto-focused policies in an effort to reduce money laundering and terrorist financing activities, the directive said.

Specifically, crypto exchanges and custodians and mining pools within the Central Asian republic must be registered locally, Mirziyoyev said.

In addition, starting on Jan. 1, 2023, residents in Uzbekistan, a former Soviet republic, will be able to transact with crypto just on local exchanges, of which need to verify users’ identity through a know-your-customer (“KYC”) process, according to the directive, adding that all transaction data over the past five years must be stored.

For crypto miners, the framework requires them to use only solar energy from power plants. Costs will double if miners take on the national grid.

The director of the agency will be assigned by the country’s president.

In the crypto ecosystem, bitcoin (BTC-USD -2.3%) is drifting down to $37.6K in Tuesday afternoon trading and ethereum (ETH-USD -2.2%) is down to $2.77K.

Towards the end of April, Switzerland’s central bank said it could eventually start buying bitcoin.