Emurgo, Cardano’s blockchain commercial wing, has inked a partnership deal with the Uzbekistan government to help with setting up a task force which will come up with regulations to guide security token offerings (STOs as well as the operations of the exchanges (STXs), Cointelegraph reports.
In a press statement released on Jan. 20, Emurgo stated the strategic partnership also brings together the Uzbekistan government though the National Agency of Project Management, Kobea Group as well Infinity Blockchain Holdings. The task force is expected to come up with a legal framework to guide how STOs and STXs will operate in Uzbekistan.
The partnership will see Emurgo and Kobea offer advisory services on matters infrastructure in relation to digital asset banking as well as blockchain education including other aspects.
Emurgo is also set to explore the potential the prospects that Cardano’s third-generation blockchain has within the country. In addition, the blockchain education will include integrating blockchain platform in the country’s university education in efforts to churn out the next blockchain experts in the country.
Emurgo will also look at how the country’s traditional equities can be tokenized via STO in efforts to enhance transparency and security in the financial sector.
The announcement comes just days after National Agency of Project Management (NAPM) said it was prioritizing the formation of the country’s crypto mining pool in efforts to consolidate capacities of both the local and international miners.
The move aims at ensuring that crypto mining is economically efficient, enhance transparency as well as security in the industry. This will also enhance efficient use of energy and attract additional investment.
Despite the formation of the taskforce, it is still unclear of the government’s stand on the use of cryptos. The government restricted the citizens from buying cryptocurrencies in December 2019. The move caught many by surprise as the nation has shown a lenient stance when it comes to cryptocurrencies. In 2018, the government had committed to regulate and develop a licencing procedure for crypto exchanges, ICOs as well as mining operations.