Central Bank of Kyrgyzstan Proposes to Regulate Crypto Exchanges

The central bank of Kyrgyzstan will now require all crypto exchanges operating in the country to be regulated. Investor protection and preventing money laundering are particular concerns.

November 16, 2020 | AtoZ MarketsThe National Bank of the Kyrgyz Republic, the central bank of Kyrgyzstan announced the development of a regulatory legal act concerning the regulation of cryptocurrencies. The Central Bank intends to regulate the activities of companies providing cryptocurrency exchange services.

Why Central Bank of Kyrgyzstan proposed to regulate crypto exchanges?

The purpose of the proposed regulation is to create favorable conditions for the development of technologies and the market and protect consumer rights.  

It is expected that the introduction of the regulation will reduce the risks of fraudulent transactions, financing of terrorist activities and legalization (laundering) of criminal proceeds, as well as capital outflow.

Read also: Cayman Islands Proposes New Legislation to Regulate Crypto Exchanges

The bank has already started public consultations on this issue.

Earlier, the National Bank pointed out the lack of legal status of cryptocurrencies in the country.

Let us remind you that in the summer the parliament of Kyrgyzstan in the third reading adopted the bill “On Amendments to the Tax Code”, which provides for the taxation of mining.

Pakistan to regulate cryptocurrencies

Meanwhile, the Securities and Exchange Commission (SECP) of the Islamic Republic of Pakistan, is preparing to enact regulations on the trading of digital assets.

Read also: Are the US & EU Now Creating Standard Crypto Regulations?

SECP says it has the potential to become more mature and improve financial efficiency in areas such as custody and settlement in the digital asset sector, and will actively seek regulatory feedback from market participants and companies in the future.

What do you think of the new cryptocurrency regulations proposed in Kyrgyzstan? Share your thoughts in the comments below.

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