The National Bank of the Kyrgyz Republic (the central bank of the country) is working on a draft law that will regulate the cryptovoltaic industry in the country.
According to the official announcement posted on the website of the regulator on 13 November, the National Bank of the Kyrgyz Republic is working on a draft law that will regulate the cryptovrency industry in the country. In the course of work on the draft law, the Bank will consult with industry representatives.
The regulator intends to regulate the sale and purchase of cryptovoltaic currency in order to combat fraudulent schemes and financial crimes, as well as to protect the rights of consumers and investors. The law should have a positive Bitcoin Supersplit review impact on the development of digital financial products and create favourable conditions for cryptocurrency business. It is also possible to introduce a special tax regime for everything related to digital assets.
The National Bank of Kyrgyzstan does not expect the task of regulating cryptocurrency to be easy, stating that the cross-border nature of many private cryptocurrencies will make it difficult to implement the law without adequate infrastructure to monitor the purchase and sale of digital assets.
In addition, the bank noted that it does not have much idea what it will have to deal with. The document states that „due to the lack of regulation and the chaotic nature of the cryptographic currency market, there are no statistical data on the number of businesses subject to the proposed regulation“. Nevertheless, clear cryptographic legislation will provide greater certainty for companies involved in cryptographic business and will attract investments without significant impact on the state budget.
All interested parties may submit their proposals by 27 November. All proposals will then be published on the official website of the National Bank on 4 December.