The fine amount totals 102 million soums ($8,200) and NAPP, functioning as the primary regulatory body, states that the crypto exchange, which is not registered as a legal entity in Uzbekistan, is providing trading services to its citizens.
Since 2019, Uzbekistan has imposed a ban on using cryptocurrency for payment of services. Additionally, the exchange is said to violate laws regarding the prevention of money laundering, the financing of terrorism, and the proliferation of weapons of mass destruction, according to NAPP.
Currently, Binance has not provided any comment on this decision.
In Uzbekistan, unlicensed activities related to trading crypto assets or obtaining licenses through fraudulent documents can result in a fine of 300 BRV (basic calculated values, approximately $8150). Mining without a license or obtaining permission through false documents carries a fine of 150 BRV ($4075).
Recently, the Uzbekistan government granted private banks Ravnaq Bank and Kapital Bank permission to issue virtual cryptocurrency cards, and in June, the first crypto depository license was issued to a subsidiary of the UAE-based brokerage firm, Lockton Solution LLC-FZ.