Kyrgyzstan is all set to regulate the crypto industry. The country’s central bank proposed the drafting of regulations for the crypto sector that could finally give legal recognition to digital currencies. In a statement, the National Bank of the Kyrgyz Republic revealed that it analyzed the impact of digital currency regulations and invited stakeholders’ proposals. “The purpose of the proposed regulation is to create favorable conditions for developing new technologies in the market, minimizing the relevant risks, and protecting consumer rights,” the central bank stated.
Crypto regulations would help to reduce the risk of fraud.
Kyrgyzstan’s central bank expects crypto regulations to help develop innovative technologies, reduce the risk of fraud, terrorism financing, and money laundering, and protect investors and consumers’ rights. The central bank also expects the government to gain more taxes from the crypto industry. The bank is aware that the crypto industry is harder to regulate than other emerging technologies, the statement said. This is mainly because of their cross-border nature, making it more difficult for one jurisdiction to police the industry.
The central bank seeks public views on crypto regulations.
In its request for public participation in crypto regulations, the central bank listed some of the key areas the citizens must consider as they submit their views. They include whether the country needs to regulate the crypto industry, what goals they want the regulations to achieve, risks that may arise from the regulations, other alternatives to regulations, and what benefits they expect from a regulated digital currency industry. As reported earlier, at the V20 conference, David Lewis, the executive secretary and G20 deputy at the organization, gave an overview of how implementation and business response have gone so far. He noted that FATF’s travel rule is not being implemented effectively by crypto exchanges.