The regime of Uzbekistan has reportedly barred its citizens from purchasing cryptocurrencies.

According to local news outlet Novosti Uzbekistana on Dec. 25, the National Project Management Bureau has banned citizens from purchasing crypto, even on established exchanges.

The decision comes as a surprise to many, as the country has previously displayed a relatively lenient stance toward digital currencies.

In September 2022, the state's authorities signed a memorandum of agreement to regulate and establish licensing for crypto exchanges, mining operations and initial money offerings.

That same calendar month, Uzbek President Shavkat Mirziyoyev ordered the establishment of a country blockchain development fund called the "Digital Trust." In July concluding year, he also signed a decree on the development and integration of blockchain engineering into the country's public administration.

Some exclusions for electric current crypto holders

While the new regulation bars citizens from acquiring or selling cryptocurrencies, it gives some limited trading permissions to current cryptocurrency holders.

Holders that are citizens of Uzbekistan can sell their current investments on two licensed exchanges later on undergoing Know Your Client procedures, ostensibly to avoid the possibility of money laundering.

Any crypto avails whose origin cannot be proved are illegal to transfer or own in the country. A report from Finance Magnates notes that the law could show ineffective, given that Uzbeks could use a virtual private network — or VPN — to bypass the ban and access foreign cryptocurrency trading platforms.

Countries around the world have taken a difficult line on various aspects of the crypto-industry. Some officials in India accept sought an outright ban on all digital assets.

Russian financial regulators are allegedly preparing a ban on the use of cryptocurrencies for appurtenances and services. While some in the manufacture are reportedly preparing for the impending crackdown, others say that the difficulty of enforcing such a ban means it will be express to a serial of "demonstration cases" that intend to dissuade the public from breaking the law.