Digital Assets in Central Asia and Caucasus

KPMG Caucasus and Central Asia, the Astana International Financial Centre, the National Payment Corporation of Kazakhstan, Mastercard, RISE Research in collaboration with Freedom Horizons conducted a market analysis of Digital Financial Assets (DFAs) in Central Asia and the Caucasus.

As part of the study, over 35 in-depth interviews were conducted with leading experts in the fields of cryptocurrency and digital financial assets. The experts analyzed and compared the development of the DFA sector across five countries in Central Asia and the Caucasus, reconstructed the chronological development of regulatory frameworks in the region, mapped the key ecosystem participants, and examined global and regional trends in the space.

Uzbekistan ranks 1st in Central Asia and the Caucasus, and 33rd globally, in terms of cryptocurrency adoption. As of 2023, 512,322 individuals in Uzbekistan own digital assets, representing 1.46% of the total population. The transaction volume of licensed providers in Uzbekistan exceeds $1 billion, and since 2022, more than $3.6 million has been contributed to the national budget. The number of cryptocurrency service providers in Uzbekistan continues to expand, reaching 15 companies as of October 2024.

The cryptocurrency industry in Central Asia and the Caucasus is experiencing steady growth, in line with global trends. A regulatory and legal infrastructure has already been established in the region that supports both cryptocurrency trading and the development of new business models utilizing blockchain technology. This research provides market participants with a deeper understanding of the region's potential, emerging trends, and barriers, amid the increasing interest in virtual assets.

«In Uzbekistan, a comprehensive regulatory framework has been in place since 2018, covering the licensing and operation of service providers, anti-money laundering measures, tokenization, cryptocurrency mining, and the circulation of digital assets. This legal framework offers clear operational conditions for service providers and cryptocurrency holders, positioning Uzbekistan at the forefront of cryptocurrency adoption in Central Asia», - emphasized Yerke Assemova, Associate Director of KPMG.

The findings of the study can be accessed by registering via the link or scanning the QR code provided below.

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