Uzbekistan Balances Crypto Innovation With State Control in 2026 Overhaul

Uzbekistan is set to integrate stablecoins into its formal payment system starting January 1, 2026, under a regulatory sandbox managed by the National Agency for Perspective Projects and the central bank. The new framework, announced by local media, allows for stablecoin-based transactions and tokenized securities trading within a controlled environment, marking a significant shift for a country that once imposed broad crypto restrictions. Pilot projects will explore distributed ledger technology for payments, while licensed exchanges will host tokenized shares and bonds. Central bank Chairman Timur Ishmetov emphasized the need for "strict control" over crypto activities, citing risks to monetary policy.

The sandbox regime includes a monthly fee increase for crypto exchanges, now set at $20,015-double the previous rate-aimed at regulating market participants according to reports. This aligns with broader Central Asian trends, as Kyrgyzstan recently launched a som-pegged stablecoin and plans for a central bank digital currency (CBDC), while Turkmenistan legalized crypto under a similarly tight state-controlled framework according to financial reports. Uzbekistan's approach, however, diverges by explicitly permitting tokenized asset issuance, positioning it as a potential leader in the region's structured digital-asset adoption.

The central bank's cautious stance extends to CBDCs, which Ishmetov described as tools for interbank settlements rather than retail use according to central bank statements. This reflects a global trend of central banks prioritizing institutional applications for digital currencies, balancing innovation with systemic stability. Uzbekistan's regulatory evolution mirrors Turkmenistan's 2026 crypto legalization, where licensing requirements and cold storage mandates underscored state oversight according to financial reports. Meanwhile, the country's neighbors are also advancing: Kazakhstan's regulatory framework remains the most developed in the region according to financial analysts.

The move underscores Central Asia's growing engagement with crypto, driven by both economic necessity and strategic foresight. As global markets grapple with crypto's regulatory complexities, Uzbekistan's sandbox model offers a controlled environment to test stablecoin utility while mitigating risks. The success of these initiatives could influence neighboring states, particularly as Kyrgyzstan and Turkmenistan experiment with digital reserves and state-backed tokens. For now, Uzbekistan's 2026 rollout represents a calculated step toward financial modernization, balancing innovation with the imperative to maintain monetary policy control.