Monday, 15, April, 2024

The National Agency for Perspective Projects (NAPP), which is the regulator in the field of crypto relations, conducted a check of the international crypto-exchanges, including the Binance crypto-exchange, for compliance with licensing requirements and the government’s relevant policies, the NAPP’s press service reported.

The check found the following violations:

  • there are reliably confirmed facts of providing services to citizens of Uzbekistan for transactions with crypto assets;
  • on the Binance platform transactions are conducted with anonymous crypto-assets, as well as with crypto-assets and funds obtained by criminal means (theft, fraud, etc.);
  • company is not registered in Uzbekistan;
  • it has no electronic platform on Uzbekistan servers;
  • the requirements of the legislation of Uzbekistan in the field of circulation of crypto-assets, countering the legalization of proceeds from crime, the financing of terrorism and the proliferation of weapons of mass destruction, as well as the storage and use of personal data are not observed;
  • no information available regarding the exclusion of persons who may be involved in terrorist activities or have outstanding convictions for economic crimes, money laundering, organized crime, drug trafficking and corruption, as well as offshore companies;
  • there is no formed authorized capital, part of which must be reserved in a separate account in an Uzbek commercial bank.

Based on the findings of the chck, NAPP made a report and sent it to the Binance crypto exchange to rectify violations. However, the report says, Binance did not take such measures and did not receive a service provider license in Uzbekistan.

Therefore, the agency decided to impose a fine of 300 basic calculation units (102 million soums, or about $8,300), which was sent to the Binance crypto exchange and the regulator of the jurisdiction in which the company is registered.

Within a month, the offender can voluntarily pay this fine, otherwise the authorized body will file an application for collection of the fine in court.

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