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PayPal is opening in Uzbekistan: Senate begins updating the law

PayPal is opening in Uzbekistan: Senate begins updating the law

At the 13th plenary session of the Senate of the Oliy Majlis, the issue of introducing amendments and additions to the Law "On Personal Data" was discussed. It's about solving a problem that is very important both for ordinary citizens and especially for those working in the digital field.

Today, software products and digital content created by many freelance programmers in Uzbekistan are sold to foreign buyers mainly through international electronic platforms. While on some platforms payment is made by bank card or bank transfer, on major platforms such as Upwork, Fiverr, Envato, Storyblocks, the PayPal system is the main way to receive payments.

But it is here that a problem arises: PayPal does not yet fully work with bank cards issued in Uzbekistan. This is due to the requirements of the legislation, in particular, the norms of the Law "On Personal Data," according to which data must be stored only on the territory of Uzbekistan. As a result, some international payment systems face barriers to entering the country's market, which creates difficulties for freelancers and users of online services.

The amendments to the law discussed are aimed at mitigating and solving these problems. In particular, it is planned to facilitate the operation of international online payment systems, accelerate the growth of fintech, e-commerce, and the digital economy, create legal and transparent payment channels for freelancers, as well as expand contactless payment opportunities for foreign tourists.

According to the new regulation, only certain categories of personal data - biometric, genetic, and telecommunication services - must be stored in the territory of Uzbekistan. The remaining data can be transferred and stored abroad, but specific security requirements will be introduced for this. At the same time, it is envisaged to grant the Cabinet of Ministers the authority to approve the list of countries where data security is ensured.

According to the senators, this law will serve to update the legal framework in the field of e-commerce based on modern requirements, creating more favorable conditions for the population and entrepreneurs to work with international Internet platforms.

Following the discussion, members of the Senate approved the draft law.

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