- Private banks Kapital Bank and Ravnaq Bank received approval to issue crypto cards.
- The crypto cards aim to integrate traditional banking services with instant crypto exchange access.
Uzbekistan has promised approval to private banks Kapital Bank and Ravnaq Bank to issue crypto cards as part of the crypto regulation digital sandbox overseen by the National Agency for Perspective Projects (NAPP).
The move will allow these banks to issue plastic crypto cards powered by the globally recognized payment system Mastercard. The NAPP announced the incorporation of Ravnaq Bank on August 14. Kapital Bank also received confirmation in May 2023.
Overall, these crypto cards, collectively referred to as UzNEX, combine 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 access to cryptocurrency exchange and automated exchange. In this case, this merger provides users with a holistic financial experience, bridging traditional banking and the world of digital currencies.
Rolling out these crypto cards by December 2023 is the ambitious goal. Kapital and Ravnaq are big 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 is unfolding amid wider crypto regulation in Uzbekistan. Since 2023, the government has been restricting crypto services to licensed companies, a turning point after that grant local crypto licenses in November 2022.
Prior to this, access to major international crypto exchanges such as Binance, FTX and Huobi was restricted due to allegations of unlicensed activity, underscoring the government’s push for legitimacy.
The regulatory frameworkThe company’s roots date back to a pivotal moment in 2022: a presidential decree established the NAPP. In addition to regulation, the NAPP provides comprehensive guidelines for cryptocurrency mining, fueling the growth of the crypto sector.