- Private banks Kapital Bank and Ravnaq Bank gained approval to issue crypto cards.
- The crypto cards are meant to integrate traditional banking services with direct crypto exchange access.
Uzbekistan has granted approval to private banks Kapital Bank and Ravnaq Bank to issue crypto cards as part of the digital sandbox for crypto regulation overseen by the National Agency for Perspective Projects (NAPP).
This move allows these banks to issue plastic crypto cards powered by the globally recognized payment system Mastercard. The NAPP announced Ravnaq Bank’s inclusion on 14 August. Also, Kapital Bank received confirmation in May 2023.
On the whole, these crypto cards, collectively named UzNEX, blend conventional banking with seamless crypto exchange access.
UzNEX crypto card and regulatory dynamics
The UzNEX crypto card innovates by integrating a bank account with direct cryptocurrency exchange access and automated exchange. In this case, this fusion offers users a holistic financial experience, bridging traditional banking and the digital currency realm.
Rolling out these crypto cards by December 2023 is the ambitious goal. Kapital and Ravnaq are major players, two of the three registered entities in Uzbekistan’s national digital sandbox. Consequently, this highlights their commitment to cryptocurrency exploration and Uzbekistan’s proactive cryptocurrency-friendly approach.
This unfolds amidst broader Uzbekistan crypto regulations. Since 2023, the government restricts crypto services to licensed firms, a turning point after granting local crypto licenses in November 2022.
Preceding this, access to major international crypto exchanges like Binance, FTX, and Huobi was curtailed due to unlicensed activity allegations, underscoring the government’s drive for legitimacy.
The regulatory framework‘s roots trace back to a pivotal 2022 moment: a presidential decree established the NAPP. Beyond regulation, the NAPP provides comprehensive cryptocurrency mining guidelines, nurturing the crypto sector’s growth.