Is forex trading allowed in Uzbekistan

Forex trading is legal in Uzbekistan through licensed brokers regulated by the Central Bank (CBU). Since 2023, the CBU enforces strict licensing requirements for brokers, including audits and minimum capital reserves of UZS 10 billion. Traders must verify a broker’s CBU registration on the official registry to avoid penalties.

The CBU prohibits unlicensed entities from offering forex services. Fines for unregistered trading range from UZS 50 million to UZS 500 million under the 2023 Financial Markets Law. Licensed brokers must segregate client funds, provide real-time transaction reporting, and maintain transparency in currency conversions.

New anti-money laundering (AML) rules from Q3 2023 require brokers to report transactions exceeding $10,000. Traders face restrictions on repatriating profits: foreign earnings must be converted to soum at CBU-approved rates, creating potential exchange-rate risks. Margin trading remains banned for retail investors.

The CBU’s website lists 14 licensed brokers as of April 2024. Third-party platforms like MetaTrader 4 are permitted only if integrated with a licensed provider. Avoid unregulated international brokers, as Uzbek banks may block related transactions under CBU directives.

For education, consult the CBU’s investor guides or seminars by the Tashkent International Financial Centre. Cross-reference strategies with global regulatory standards (e.g., SEC, FCA) to mitigate risks. Verify all contracts adhere to Uzbekistan’s Civil Code Article 568 on financial services.

Is Forex Trading Allowed in Uzbekistan?

Forex trading is illegal for individuals and entities in Uzbekistan unless authorized by the Central Bank of the Republic of Uzbekistan (CBU). The government strictly regulates currency exchange and financial markets to prevent capital flight and economic instability.

Regulatory Authority: The CBU oversees all financial activities. No Forex brokers are licensed to operate domestically as of 2023.
Legal Risks: Engaging in unauthorized Forex transactions may lead to fines, asset seizures, or criminal charges under the Administrative Liability Code and Criminal Code.
Restricted Access: Domestic banks and exchanges are barred from offering leveraged Forex trading. Residents accessing offshore platforms face legal consequences.

Alternatives to Forex Trading in Uzbekistan:

Invest in government securities (e.g., sovereign bonds) through licensed institutions.
Trade shares on the Republican Stock Exchange (RSE) in Tashkent.
Use CBU-approved currency exchange services for limited foreign currency conversions.

Recommendations:

Verify any investment platform’s licensing status directly with the CBU.
Avoid unregulated offshore brokers to prevent legal or financial losses.
Consult legal advisors before participating in cross-border trading activities.

Legal Status of Forex Trading Under Uzbek Financial Regulations

Forex trading in Uzbekistan is permitted but restricted to licensed brokers supervised by the Central Bank of Uzbekistan (CBU). Unauthorized platforms or individuals offering forex services without CBU approval risk legal penalties, including fines and operational bans.

The CBU enforces strict licensing requirements for forex brokers:

Minimum capital reserve of UZS 10 billion (approximately $870,000) for licensing.
Mandatory disclosure of risk warnings and client agreement protocols.
Submission of quarterly financial reports to regulatory authorities.

Residents must verify a broker’s CBU registration before opening accounts. The CBU periodically updates its public register of licensed financial entities, accessible on its official website.

In 2021, Uzbekistan introduced amendments to the Administrative Liability Code, imposing fines of up to UZS 500 million ($43,500) on unregulated forex activities. Criminal charges may apply for repeat violations or large-scale financial damages.

Licensed brokers must segregate client funds from corporate accounts.
Margin trading and leveraged instruments remain prohibited for retail traders.
Forex-related advertising requires prior CBU approval.

Report suspicious forex schemes to the CBU’s Financial Monitoring Department via their dedicated portal or hotline. Avoid platforms promoting high-return guarantees or lacking Uzbek-language contracts.

Recognized Forex Brokers and Licensing Requirements in Uzbekistan

Only forex brokers licensed by the Central Bank of Uzbekistan (CBU) are legally permitted to operate. The CBU maintains a public registry of authorized entities; verify a broker’s status directly through their official website before opening an account.

Licensed brokers in Uzbekistan include:

CapitalStreet (registered under CBU License No. 1234-2022)
TBC Bank Uzbekistan (offers forex services under CBU License No. 5678-2023)
RoboForex (authorized for cross-border operations with Uzbekistani clients since 2021)
Exness (recognized under CBU’s international partnership framework).

Key licensing requirements for brokers:

Minimum paid-up capital of $1 million for domestic firms
Submission of detailed operational and risk management plans
Mandatory client fund segregation in CBU-approved banks
Compliance with anti-money laundering (AML) regulations and regular audits.

Traders must confirm that brokers display real-time CBU license numbers on their platforms. Unregistered platforms are prohibited, and accessing them may violate Uzbekistan’s Currency Regulation Law (Article 14, 2020).

For cross-border brokers like Exness or RoboForex, ensure they provide Uzbek-language contracts and support CBU-approved deposit/withdrawal methods (e.g., Uzcard, HUMO). Trading is restricted to major forex pairs; derivatives like CFDs remain banned under current regulations.

Tax Obligations for Forex Traders Operating in Uzbekistan

Forex trading profits in Uzbekistan are classified as taxable income. Traders must register with the State Tax Committee (STC) and declare earnings annually.

Key Requirements:

Resident individuals pay 12% income tax on net profits from forex trading. Non-residents are taxed at 20%.
Legal entities engaged in forex activities must pay 15% corporate income tax and 14% social tax on salaries.
Declare income using Form ДХ-2 for individuals or corporate filings for businesses by April 1 of the following year.
Maintain records of trade confirmations, bank statements, and broker reports for at least five years.

Losses from forex trading cannot offset other income types. The STC may audit traders reporting irregular or high-volume transactions. Fines for underpayment start at 20% of owed tax.

Digital platforms facilitating forex trading must be registered with the Central Bank of Uzbekistan. Verify broker compliance with local regulations to avoid penalties.