Kyrgyzstan may soon accord legal status to cryptocurrency exchanges

Kyrgyzstan has been a hot topic in the crypto community for a while now. From the successful rollout of crypto tokens for locals to the central bank’s efforts to implement a number of AML and CFT measures that will force local crypto exchanges to report their activities, the Central Asian country has been great in this area proactive.

Needless to say, it’s back on the news today.

Clarification of the position of the crypto exchanges

The State Service for the Regulation and Supervision of Financial Markets in Kyrgyzstan (Gosfinnadzor) has introduced a new regulatory framework to give legal status to cryptocurrency exchanges. According to local media reports, the authorities have also presented a draft provision to regulate crypto exchanges.

After the same

“The draft provision defines the status, functions, rights and obligations of the crypto-exchange as well as mandatory requirements for the activity of the crypto-exchange, the procedure for its state registration in the Unified State Register.”

In addition, it also requires that crypto exchange service providers adhere to the existing AML / CFT measures.

meaning

According to a statement from the ministry

“This will reduce risks and support the development of innovative technologies and the shaping of the digital economy, as well as laying the start of the development of the systems market and creating the conditions for participation for a wider range of participants, including qualified investors and companies.”

In addition, the new framework is expected to increase investor awareness of crypto exchange trades. It is also speculated that this will create new sources of income for the country’s national budget.

The Kyrgyz Republic also has a competitive infrastructure and regulatory clarity for those who want to get into crypto. For example, not long ago the National Bank of the Kyrgyz Republic introduced a licensing system for exchanging cryptocurrencies. This step was taken to protect local investors.

However, especially in recent months, the crypto sector has garnered its fair share of criticism and opposition. For example, a former government official recently criticized crypto mining operations in the area, claiming

“Power consumption by cryptocurrency mining has increased and this has led to an energy crisis.”

It’s worth noting that this is an opinion held by many, especially crypto skeptics, despite repeated efforts to prove otherwise.

Recent articles

Crypto exchanges struggle as El Salvador adopts Bitcoin

Today, Bitcoin is becoming an official currency in El Salvador, and the markets and crypto exchanges seem to be struggling. On...

Schools are back – and time to comply with the ICO’s Age Appropriate Design Code

As of September 2, 2021, the United Kingdom's Information Commissioner's Office ("ICO") expects organizations to use their Age Appropriate Design Code ("AADC"). The...

the ICO wants input on when personal data goes international

You don't have to be a data-focused IT service provider to realize that the UK was lucky enough to receive an adequacy decision from...