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October 4, 2022
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Kyrgyzstan wants to regulate the cryptocurrency market –

Kyrgyzstan wants to regulate the digital asset market. The central bank of the Kyrgyz Republic aims to provide cryptocurrency investors with the same level of protection as is used for traditional finance. The institution plans to introduce a license for exchanges that offer digital currencies.

Kyrgyzstan wants to regulate the cryptocurrency market

The National Bank of the Kyrgyz Republic (NBKR) reportedly plans to introduce a cryptocurrency exchange licensing system. The goal is to protect local investors.

NBKR CEO Tolkunbek Abdygulov announced that the country’s central bank plans to start regulating the market for cryptocurrencies such as Bitcoin (BTC). The local economic website wrote about the case on February 12, Tazabek.

Abdygulov said the regulatory initiative aims to protect cryptocurrency operations and investors in the Kyrgyz Republic. The idea is to provide investors with protection similar to what already exists with traditional finance.

The goal of NBKR is to create conditions for customers, citizens of the Kyrgyz Republic. If you want to buy bitcoins, you just go to the exchange office, pay and get the bitcoins that are guaranteed. Today you sell soms, buy dollars – if the currency exchange is licensed by NBKR, there is no risk of losing money. There is a goal for the same to happen with cryptocurrencies – He said.

You invest at your own risk!

Despite the ambitious plans of the NBKR, the central bank continues to warn the public. The institution reminds you of the high risk of investing in cryptocurrencies.

– If Bitcoin hit $ 50,000 yesterday, tomorrow could drop to $ 20,000. So you can lose on this investment! – Abdygulov warned.

After the first draft law on cryptocurrencies was put into circulation, which took place in November 2020, the Kyrgyz government prepared two more laws in January 2021: “On cryptocurrency processing” and “On amendments to legal acts in the field of virtual assets”. Kyrgyzstan’s authorities expect it to pass the new legislation by the end of 2021.

In addition to general legislative efforts regarding the cryptocurrency market, Kyrgyzstan also sought to regulate mining activities regarding digital currencies. However, according to Abdygulov, no specific legislation has been adopted so far.

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