The Cardano blockchain’s commercial arm, Emurgo, has partnered with the government of Uzbekistan to form a blockchain task force to develop regulations for security token offerings (STOs) and exchanges (STXs).

In a Jan. 20 press release, Emurgo revealed its new cooperation with the Uzbek government and Kobea Group & Infinity Blockchain Holdings — the official Technology Advisory Agency for Uzbekisitan’s Digital Economic Development Project — aimed at the development of a legal framework for STOs and STXs in Uzbekistan.

As part of the initiative, Emurgo and Kobea will provide advisory services regarding infrastructure for digital asset banking, blockchain education units and other issues.

Tokenization of traditional equities

Emurgo will also examine the potential for Cardano’s third-generation blockchain in the country and will also integrate its blockchain education platform into Uzbekistan’s national universities to train future blockchain experts.

By tokenizing traditional equities through STOs, the country purportedly intends to make the financial sector more transparent and secure.

The initiative comes right after Uzbekistan’s National Agency for Project Management prioritized the creation of a national cryptocurrency mining pool in a bid to consolidate the capacities of domestic and foreign miners at the national level.

With the move, the agency intends to ensure the economic efficiency of crypto mining, boost the transparency and security of the industry, increase the efficiency of energy consumption in this area and attract investment.

Unclear stance toward cryptocurrencies

Still, the government of Uzbekistan has demonstrated a mixed stance toward the usage of cryptocurrencies, as it barred its citizens from purchasing crypto in late December of last year.

The decision came as a surprise to many, as the country had previously displayed a relatively lenient stance toward digital currencies. In September 2018, the country’s government signed a memorandum of understanding to regulate and establish licensing for crypto exchanges, mining operations and initial coin offerings.