Emurgo, the official commercial arm of Cardano blockchain, has entered in a strategic partnership with Uzbek government to establish a task force that will lead the development of legal framework for security token offerings (STO) and security token exchanges (STX) in the country.
Emurgo announced the parentship in a press release on January 20th. According to the release, the task force is established in collaboration with the National Agency of Project Management (NAPM) under the government of the Republic of Uzbekistan, and alongside advisors KOBEA Group & Infinity Blockchain Holdings, the official Technology Advisory Agency for Uzbekistan’s Digital Economic Development Project.
According to Emurgo press release, the vision behind this partnership is to develop a legal framework for offering security tokens (STOs) and exchanges (STXs) in the country. The company said:
“Security token offerings aim to tokenize and modernize traditional equities, bringing along the advantages of blockchain transparency, security, and efficiency. This agreement puts into motion a transformative solution with regards to security tokens and digital asset infrastructure.”
Emurgo said that its role within the task force was to provide provide advisory services to develop the framework and business units and would explore the potential for Cardano’s third-generation blockchain for infrastructure projects in the country. The company will also assist Uzbek government to develop blockchain education infrastructure for local universities of the country to train future blockchain experts.
In addition, Emurgo and KOBEA will provide consulting services on infrastructure for digital asset banking as well as blockchain education units.
Emurgo, founded in June 2017 in Japan, is an official commercial arm of Cardano project and works with IOHK, research and development company focussed on using the peer-to-peer innovations of blockchain to build accessible financial services for all, and Cardano Foundation to drive the adoption of the Cardano blockchain through investment, advisory services, and by building projects and organizations that adopt Cardano’s decentralized blockchain ecosystem. The commercial arm has established research and development centres in key geographies such as the Philippines, South Korea, and Vietnam.
Ken Kodama, CEO of Emurgo, commented:
“Uzbekistan today, more than ever, is open to innovation. It is a great honor to be able to work closely with the country’s government officials to help drive the implementation of blockchain technology. We are glad to provide our advisory services to the Uzbekistan government to build essential blockchain infrastructure & support local universities to train future blockchain experts.”
As Crypto-Economy reported on July 16, 2019, The country’s president, Shavkat Mirziyoyev signed an executive order that would enable the country take advantage of blockchain technology. The order called for a legal framework to enable proper regulation of mining activities and smart contracts. It aimed as well to encourage blockchain implementation in governance and business and this partnership might be a part of that order.
Central Asian countries like Uzbekistan are transforming into a safe heaven for crypto miners as a number miners are relocating their business in CA countries like Uzbekistan and Kyrgyzstan from neighbouring Iran because of Iran-US military conflict.
The Blockchain technology has become attraction for the country but still, the Uzbek government has shown mix stance towards the usage of cryptocurrencies.