What decision was approved by the Senate?
The Senate of the Republic of Uzbekistan approved the Law “On Amendments and an Addition to the Law of the Republic of Uzbekistan ‘On Personal Data’”. These changes were developed in line with modern digital realities and are aimed at adapting national legislation to global economic and technological processes.
Why did the need for international payment systems arise?
Uzbekistan’s IT sector is actively growing, and local programmers and digital content creators increasingly rely on foreign platforms to sell software products and digital content.
Platforms such as Upwork, Fiverr, Envato, and Storyblocks often require the use of the PayPal payment system for settlements. However, PayPal does not support bank cards issued by banks in Uzbekistan.
What caused the existing PayPal restrictions?
The limitations related to PayPal are largely linked to the requirements of Uzbekistan’s Law “On Personal Data”. Under previous regulations, the country faced restricted access to international payment systems due to strict rules on mandatory local data storage.
What is the main purpose of the new amendments?
The adopted amendments aim to eliminate legal and technical barriers preventing international online payment systems from operating in Uzbekistan. As a result, faster development of fintech, e-commerce, and the digital economy is expected.
Which types of personal data must remain stored locally?
The new provisions clarify that not all types of personal data of Uzbek citizens are required to be stored within the country. Mandatory local storage applies to biometric and genetic data, as well as information related to telecommunication services.
How will cross-border data storage be regulated?
The transfer and storage of personal data abroad will be permitted only in compliance with clearly defined security requirements. In particular, the Cabinet of Ministers will approve a list of countries where a guaranteed level of protection for the personal data of Uzbekistan’s citizens is ensured.