- Kyrgyzstan central bank announced that it is working on developing a cryptocurrency law.
- The bank seeks to regulate the industry in a way that would minimize risks without stifling innovation.
- The bank is accepting proposals by industry stakeholders that will later be published in the official register.
Kyrgystan central bank develops draft for crypto regulation
The Kyrgyzstan central bank has started the development of a draft bill to formulate the nation’s cryptocurrency law.
The landlocked nation is looking to develop the cryptocurrency industry while minimizing risks. Kyrgyzstan central bank, the National Bank of the Kyrgyz Republic (NBKR), has announced the development of a crypto draft law that would regulate the nation’s cryptocurrency industry.
Kyrgyzstan central bank formulates crypto draft law
The bank announced on November 13 that it is accepting proposals for the development of a crypto draft law. The announcement stated that the bank is looking to regulate the industry without stifling innovation.
The document notes that the industry currently lacks a favorable environment to support its growth. Furthermore, the lack of proper regulation also puts customers and investors at risk.
The Kyrgyzstan central bank continued that the industry is unable to prevent the emergence of fraudulent schemes due to the absence of proper regulations. The bank added that the draft’s purpose is to create a favorable environment for the industry while preventing criminal activity and minimizing risks.
Crypto regulation for Kyrgyzstan
The bank then described the potential advantages and the hurdles it needs to overcome to implement an ideal crypto law.
Proper regulation would stimulate the development of the sector and improve conditions for the business community. A regulatory act would also enable authorities to monitor and minimize illicit activities being done through and in connection to digital assets.
However, the bank also noted that the implementation of the law is quite difficult, considering the decentralized and cross-border nature of virtual assets. Furthermore, the bank noted it is difficult to monitor cryptocurrency transactions and to develop an “optimal tax regime.”
Regardless, a regulatory act would provide a sense of security to both businesses and investors and would encourage the growth of the sector.
The bank is accepting proposals for the draft law until November 27 while the proposals will be published by December 4.