The Kyrgyz Central Bank is developing a bill for the cryptocurrency industry

The Central Bank of Kyrgyzstan, a country in Central Asia, is drafting a bill to regulate the crypto industry in the country.

According to an announcement made on November 13th The National Bank of the Kyrgyz Republic, in consultation with industry stakeholders, is drafting a bill that regulates the exchange of cryptocurrencies.

The bank stated that The bill would regulate the sale of cryptocurrencies to combat fraudulent cryptocurrency systems and financial crimes, and protect the rights of consumers and investors.

The Kyrgyz Central Bank is developing a bill for the cryptocurrency industry
The Kyrgyz Central Bank is developing a bill for the cryptocurrency industry

Among the expected benefits of the upcoming regulations, The bank notes the improved development of digital financial products, favorable conditions for business and even the possible introduction of an official tax system for digital assets.

But still, The bank also expects crypto legislation to come with its own hurdles. The cross-border nature of many private cryptocurrencies will make enforcement of the law difficult without the proper infrastructure to monitor and enforce it.

In fact, the bank claims that Due to the “lack of regulation and the chaotic nature of the cryptocurrency market” there is no concrete data on the number of companies that would be subject to the new law.

According to the announcement, The bank hopes that strict regulations on cryptocurrencies will provide greater security for companies related to cryptocurrencies and attract investment without significantly affecting the state budget.

The bank will accept proposals for the bill by November 27th. After that, they will be published in the official register before December 4th.

It will be a long time before crypto rules are strong in the politically besieged nation. In August 2019, parliament tabled a bill to tax crypto miners only to allow authorities to turn off electricity for miners a month later because of alleged overconsumption.

Last summer, parliament was still considering a robust tax system for crypto miners, but unrest has since derailed previous political initiatives.;; For example, on October 7, the shock parliament elected the leader of the nationalist opposition and former MP Sadyr Japarov as incumbent president and prime minister.

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