What is NAPP?

NAPP (National Agency for Advanced Projects of the Republic of Uzbekistan) is a state institution performing regulatory functions in several fields: capital market, crypto asset circulation, insurance, e-commerce, as well as lottery and betting activities. The agency was established in April 2022 based on the National Project Management Agency (NAPU) and reports to the President of the Republic of Uzbekistan.

How NAPP became the capital market regulator

Initially, the agency was primarily responsible for state policy in crypto assets. In September 2023, it took over tasks, functions, and powers of the Ministry of Economy and Finance regarding capital market regulation. Since then, NAPP has effectively assumed the role previously held by the Capital Market Development Agency (2019–2021) and the Ministry of Finance.

Main functions

  • Licensing of stock exchanges, organizers of over-the-counter securities trading, and the Central Depository.
  • Issuing licenses and permits to professional securities market participants: brokers, investment consultants, trust managers.
  • Regulation and oversight of crypto asset circulation, including licensing crypto exchanges and mining.
  • Supervision of insurance organizations' activities.
  • Development of corporate governance in joint-stock companies.
  • Protection of investor and shareholder rights.
  • Provision of regulatory sandbox regime for new financial products and technologies.

How NAPP's work affects investors

For a private investor, NAPP is a supervisory body that sets the «rules of the game» in the stock market. The agency decides who is authorized to provide brokerage services, monitors disclosure of information by issuers, and reviews complaints about shareholder rights violations. Checking for NAPP licensing of a broker or crypto exchange is a basic step before investing.

Advantages and disadvantages of the unified regulator model

Advantages:

  • A single center of responsibility for capital market, crypto assets, and insurance simplifies interaction for market participants.
  • The «regulatory sandbox» tool enables faster launch of new financial products.
  • A specialized regulator increases confidence of foreign investors in the market.

Disadvantages:

  • Frequent changes of market regulators in the past created uncertainty for participants.
  • A broad scope of authority—from securities to lotteries—requires one agency to have expertise in diverse fields.