The National Bank of the Kyrgyz Republic on 13th November 2020 published draft regulatory bill on the regulation of cryptocurrencies.
The bank is accepting proposals for the draft bill until 27th November 2020, after which they will be publish the bill on the official register by Dec. 4.
“Every country is facing many problems due to lack of regulation such as emergence of fraudulent schemes, the risks of financing criminal activities, including terrorist ones.Thus the purpose of the proposed regulation is to create favorable conditions for the development of technologies and the market, minimize the relevant risks, and protect consumer rights”.Said the Kyrgyz Bank
The report considers that making the law related to the cryptocurrency investors and business will have less uncertainty.The major benefits are listed below .
- stimulating the development of innovative technologies, creating favorable conditions for the business community, including for investors.
- stimulating the development of national legislation in the field of digital products.
- reducing the risks of fraudulent transactions, financing of terrorist activities and legalization (laundering) of criminal proceeds, as well as capital outflow.
- protection of the rights of consumers and investors.
- withdrawal from the shadow of market entities providing services for the purchase and sale (exchange) of cryptocurrencies, ensuring transparency of cryptocurrency turnover.
- introduction of the optimal taxation option.
After the approval of the bill next steps would be launching many business related to cryptocurrency such as crypto exchange.Which we have seen recently in Belarus where a crypto currency exchange was launched.
