Uzbekistan leads Central Asia in cryptocurrency adoption, climbs global ranking

Uzbekistan has emerged as a leader in cryptocurrency adoption among Central Asia and the Caucasus, securing the 33rd position in the global ranking, according to a report by RISE Research. 

The country climbed 54 places in the index, bolstered by a supportive regulatory framework and tax exemptions for cryptocurrency transactions through licensed providers.

Uzbekistan’s legislative framework allows cryptocurrency operations to be conducted exclusively through licensed providers, and all such transactions are tax-exempt. As of October 2024, the National Agency for Perspective Projects oversees 15 licensed providers in the country, with a cumulative transaction volume exceeding $1 billion. Approximately 500,000 Uzbeks — 1.46% of the population — own cryptocurrencies.

Since the implementation of cryptocurrency regulations in 2022, the sector has contributed over $3 million to Uzbekistan’s state budget. The country is also expanding its blockchain and tokenization initiatives and actively collaborating with international firms, including Tether, to solidify its position in the innovation landscape.

Kazakhstan ranks second in the region, with over 1.5 million citizens, or 8% of the population, potentially engaged in the global cryptocurrency market. Meanwhile, Kyrgyzstan is recognized for its lenient cryptocurrency policies. The country has more than 100 registered virtual exchange operators, including crypto exchanges and trading platforms. In the first half of 2024 alone, Kyrgyzstan’s cryptocurrency trading volume surpassed $4 million, according to RISE Research.

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