KyrgyzstanThe country’s central bank has set up two bills to recognize and regulate the country’s emerging crypto sector.
According to an official Announcementthe National Bank of the Kyrgyz Republic has opened the two accounts, “About the processing of cryptocurrencies“and”On changes to legislative acts in the field of virtual assets, “to public discussion.
Interested parties have until February 21 to submit their comments and concerns about the legislation.
The proposed legislation aims to recognize cryptocurrency exchanges, and specifies that exchanges must be managed by legal entities licensed by the country’s central bank. The bill contains reporting obligations aimed at reducing money laundering and terrorist financing risks.
There are also protections for consumer rights and provisions for enforcement measures against fraudsters working with virtual currencies.
A separate bill introduces the concept of “virtual assets” into the Civil Code of the Kyrgyz Republic, identifying crypto assets as an object of civil rights. The bill also mandates the taxation of services provided by cryptocurrency exchanges.
Kyrgyz Central Bank announced that this would happen start working on cryptocurrency draft regulations on Nov. 13, citing surging domestic interest in crypto assets as a catalyst.
The Kyrgyz Republic has previously tried to introduce crypto regulation, introducing a tax regime for miners during August 2019. However, authorities then cut off industry access to electricity the following month claim overconsumption.
Kyrgyzstan’s parliament again considered a tax regime for mining in June 2020, with the government seeking new revenue streams to offset the economic impact of the coronavirus pandemic.
However, the bill was not passed, with lawmakers raising concerns about the impact of industrial mining activities on the country’s energy supply and the ongoing illegal mining activities despite the September 2019 crackdown.