The NAPP reportedly penalized Binance around $8,200 for operating without license.
Uzbekistan has stringent regulations regarding the buying, selling, and trading of crypto.
Uzbekistan is preparing to confront Binance over unregistered operations in the nation. Legal action against Binance for operating illegally in the nation has been declared by the National Agency for Prospective Projects (NAPP). This action highlights the growing regulatory expectations placed on cryptocurrency exchanges throughout the world.
Moreover, the NAPP reportedly penalized Binance 102 million soms (around $8,200) for operating without a license in Uzbekistan. The Uzbekistani authorities have decided to take legal action to enforce the fee since Binance has failed to comply with the order to fix the issue.
Growing Regulatory Scrutiny
Also, the action against Binance exemplifies the difficulties faced by global crypto exchanges in complying with the varied regulatory requirements imposed by various countries. Vyacheslav Pak, deputy director of the NAPP, said that Binance’s decision not to pay the fee has forced the organization to follow the legal process in line with Uzbekistan’s laws. After the claim is filed, the agency will notify the jurisdiction where Binance is registered so that they may execute any ruling.
Crypto exchanges are under growing pressure from regulatory bodies to adhere to their own rules and regulations. Uzbekistan has stringent regulations regarding the buying, selling, and trading of cryptocurrencies. Exchanges that deal in these assets must be licensed by NAPP and use Uzbek servers to host their electronic trading platforms.
Furthermore, Binance faces other regulatory obstacles beyond Uzbekistan. In South Korea, Binance is also encountering regulatory problems and has decided to sell its stake in the domestic crypto exchange GOPAX.