The amendments to the Law “On Personal Data” approved by the Senate of the Republic of Uzbekistan are aimed at eliminating legal barriers for international online payments and creating conditions for the development of the digital economy, e-commerce, and freelancing.

At the 13th plenary session of the Senate, the Law “On Amendments and Additions to the Law of the Republic of Uzbekistan ‘On Personal Data'” was reviewed.

It was noted that today, freelance programmers working in Uzbekistan widely use international electronic platforms to sell their software products and digital content to foreign clients. While payments on some major platforms are made via bank cards or bank transfers, on platforms such as Upwork, Fiverr, Envato, and Storyblocks, payments can only be processed through PayPal.

However, bank cards issued in Uzbekistan do not currently function in full format within the PayPal system. This restriction is linked to the requirement to store information exclusively within the territory of Uzbekistan, as established by national legislation, specifically the Law “On Personal Data.” As a result, the access of international payment systems to the Uzbekistan market has been limited to a certain extent.

The amendments to the Law eliminate these issues. The legislation provides for:

• Supporting the operation of international online payment systems in the country.

• Accelerating the development of fintech, e-commerce, and the digital economy.

• Creating legal and transparent payment mechanisms for freelancers.

• Expanding contactless payment options for foreign tourists.

The Law stipulates that only specific categories of data (biometric, genetic, and telecommunications services data) must be stored within the territory of Uzbekistan.

For the transfer and storage of other types of data abroad, clear security requirements are being introduced. The Cabinet of Ministers is granted the authority to approve a list of states that ensure the adequate protection of personal data.

According to the senators, the Law contributes to improving the legal and regulatory framework for e-commerce and creating a more favorable environment for the public and business entities to utilize international internet platforms.

Following the discussion, the senators approved the Law.

Source: Senate of the Oliy Majlis of the Republic of Uzbekistan