Kyrgyzstan: Central Bank Developing Draft Law For Cryptocurrency Industry
The central bank of Kyrgyzstan has revealed that is working towards developing a draft law to regulate crypto exchanges in the nation. With this, the Asian nation could join countries across the world that have a clear policy on crypto assets.
Major Step Towards Regulation
The Apex bank revealed this in a document issued on its website in which it stated that the development was in consultation with crypto stakeholders. According to the bank, the draft law would be extensively covered and include the sale and purchase of crypto assets in the nation.
It further continued that the law is aimed at ensuring regulations to reduce the occurrence of crypto scams and money laundering scheme. The law would also ensure that customers and investors of crypto assets within the nation are protected with laws aimed at reducing such scams.
The bank anticipates that the law would enable improved development of fintech products and ideal environment for crypto firms to thrive. There was also a mention of a possible introduction of a tax for digital assets which would be a major step towards adoption.
Also, the bank expects that the creation of a comprehensive crypto law would provide clarity in grey areas and help make the financial space attractive for investors. Despite these proposals, the Kyrgyzstan apex bank anticipates some obstacles that could make the legislation of crypto assets difficult. One of which is the cross-border nature of cryptocurrencies that makes it difficult to track transactions leading to lack of proper regulation.
This makes it almost impossible to regulate as there could be conflicting data. However, these concerns would be covered in the new law in collaboration with crypto stakeholders.
Kyrgyzstan an Ideal Location For Miners
Kyrgyzstan is no stranger to the cryptocurrency industry and is one of the countries favored by miners due to its cheap electricity. Nevertheless, the lack of a concrete cryptocurrency law has caused problems between miners and regulators.
This was evident in 2019, when the nation’s parliament introduced a law to tax crypto miners only for the government to cut off miners electricity supply citing overconsumption. The crypto draft by the central bank would go a long way towards positioning the country as one of the frontrunners in the crypto industry.