NAPU of Uzbekistan is preparing a lawsuit against the cryptocurrency exchange Binance, which has refused to voluntarily pay a fine for operating in the country without a license. This was reported by local media, citing a statement from the agency’s deputy director, Vyacheslav Pak.
According to him, Binance’s refusal to settle the matter amicably was “expected.” NAPU now plans to pursue the fine through the courts and subsequently enforce it in the jurisdiction where the crypto exchange is registered.
It is known that Binance uses Hong Kong law to resolve legal disputes.
“We will officially seek to ensure that Binance complies with our legal requirements,” added Vyacheslav Pak.
The decision to impose a fine of 102 million soms (~$8300) on the exchange was made in January following an inspection of its activities. NAPU found that Binance provided services to Uzbek citizens without registering a legal entity in the country. Additionally, it conducted transactions with anonymous coins.
Since August 2022, access to unlicensed bitcoin exchanges and exchangers has been blocked in Uzbekistan.
In 2024, the authorities approved criminal and administrative penalties for illegal activities related to cryptocurrency mining and use. These will come into effect on April 19.