Binance Expands into Uzbekistan

Cryptocurrency exchange Binance has begun operations in Uzbekistan with the licensed provider Coinpay. Users can now legally buy and sell digital assets, with deposits and withdrawals available in various amounts. Binance is not the only company in this sector; over 10 providers are already active in the republic. Let’s explore the changes that the market is expected to undergo.

How does Binance work

Kirill Khomyakov, Binance’s regional head for Central and Eastern Europe, Central Asia and Africa, has stated that users in Uzbekistan can access services through the Coinpay platform. This licensed provider allows users to register, complete verification, download the Binance application, and conduct transactions in their local currency.

A key advantage of this arrangement is that all transactions will be conducted legally and comply with regulatory requirements. The partnership between Binance and Coinpay primarily focuses on enabling deposits and withdrawals via bank cards and national payment systems.

«If we expand our range of services, we will inform users,» Khomyakov added.

While he did not provide details about the cooperation between the two companies—such as whether Coinpay will receive a percentage of transactions—Khomyakov emphasized that this collaboration represents a significant step in advancing the crypto industry in Uzbekistan.

What cryptocurrencies are available

Users in Uzbekistan now have access to all Binance assets. This includes Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), and hundreds of other cryptocurrencies available for trading.

How this will affect the market

The Uzbek government has taken proactive steps to regulate the cryptocurrency industry in recent years. The National Agency for Perspective Projects (NAPP) has established clear guidelines for working with digital assets. Trading on unlicensed platforms can lead to penalties ranging from administrative fines to criminal prosecution.

Binance has encountered challenges in Uzbekistan. In early 2024, the exchange was fined for operating without a license but complied with all regulatory requirements. The company aims to strengthen its Commonwealth of Independent States (CIS) presence.

«Uzbekistan is one of Binance’s priority markets in the CIS. Providing services to users in the country will enhance our position across the entire region,» emphasized Kirill Khomyakov.

The exchange representative did not disclose specific figures regarding the number of local users or trading volume.

However, Denis Shipilov, director of the crypto depository Lockton Finance, notes that significant changes in the market are unlikely. More than ten providers are already operating in the country, which means clients’ fundamental needs are being met. While we shouldn’t expect a revolution, the arrival of Binance may lead to a gradual sector evolution, according to the expert.

Players Competition

Alternative platforms to Binance are continuously evolving. For instance, Lockton Finance has introduced an investment module similar to Binance and now provides access to over 200 cryptocurrencies. The company is also developing custodial services and a platform for tokenizing real-world assets (RWA).

«In addition to offering opportunities to invest in the most relevant crypto assets, the Lockton Finance platform features custodial services for crypto assets, an RWA tokenization platform, and an Initial Token Offering (ITO) module, which allows users to create financial products based on investment tokens,» explained Shipilov.

The crypto exchange UzNex continues to operate, trading 15 coin pairs, including Bitcoin and Ether. Additionally, various crypto stores, such as Paynet Crypto and C-base, function within the country. A complete list of providers can be found on the NAPP website.

As Binance enters this market, it will face existing competition. Experts believe this competition could strengthen Binance’s position, enhance user conditions, and further develop the digital asset ecosystem in Uzbekistan.