The government of the Kyrgyz Republic is driving the adoption of cryptocurrencies by introducing a national regulatory framework for crypto trading platforms.

Kyrgyzstan’s State Service for Regulation and Supervision of Financial Markets (Gosfinnadzor), a regulatory agency subordinate to the Ministry of Economy and Finance, has drafted a provision regulating crypto exchanges, local news agency 24.kg reported on Wednesday.

The newly proposed regulations are reportedly aimed at establishing the legal status of crypto exchanges operating in Kyrgyzstan, functions, responsibilities and compliance requirements including the required registration with the Unified State Register. The rules also require crypto exchange service providers to ensure measures to combat illegal activities such as money laundering and terrorist financing.

Gosfinnadzor reportedly said the new framework would reduce risk and support the development of innovative technologies and the formation of a digital economy in the Kyrgyz Republic. The rules would also make it possible to create a new financial ecosystem that would include the participation of a wider range of actors such as skilled investors and businesses, the agency noted.

The new framework is expected to raise investor awareness of crypto exchange trades and generate new revenue streams for the state budget.

Related: Former government official blames crypto mining for energy crisis in Kyrgyzstan

As previously reported, Kyrgyzstan has tried several times over the past few years to regulate the crypto industry, introducing regulations for the crypto mining industry and cryptocurrency exchanges. In February, the Kyrgyz Central Bank planned to introduce a licensing regime for crypto exchanges to protect local investors.