Uzbekistan Levies Penalty on Binance for Unauthorized Operations

In a legal move, Uzbekistan is set to pursue a court order compelling Binance to settle a fine of approximately 102 million soms, or $8,200, for conducting business without the requisite licensing.

Uzbekistan’s National Agency for Prospective Projects (NAPP) plans to initiate legal proceedings against the global cryptocurrency exchange Binance for operating without official authorization within the nation, according to statements made by Vyacheslav Pak, the agency’s deputy director, as reported by local news outlets.

Despite being penalized by NAPP for its unauthorized operations in Uzbekistan, Binance has declined to pay the fine. Consequently, the agency aims to enforce the payment through legal channels, based on the ruling that will be issued and forwarded to the legal jurisdiction of Binance’s registration.

Vyacheslav Pak elaborated, “As anticipated, they did not agree to settle the fine. Hence, in adherence to Uzbekistan’s legal framework, we will present our claim to the judiciary for a verdict.”

He further noted that NAPP intends to transmit the court’s decision for enforcement to the jurisdiction where Binance is registered through official means.

Earlier in January, NAPP imposed a fine of 102 million soms on Binance. To date, the cryptocurrency exchange has not taken the necessary actions to obtain a license for its operations within the country.

Regulations stipulate that cryptocurrency transactions within the nation must be conducted solely through NAPP-licensed specialized crypto exchanges. Moreover, it is mandatory for the electronic systems facilitating cryptocurrency trading to be hosted on servers located within Uzbekistan. Starting January 1, 2023, only national service providers are authorized to conduct cryptocurrency buying, selling, and exchange transactions for both citizens and legal entities in Uzbekistan.

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