The Kyrgyzstan Republic’s government is taking steps toward cryptocurrency adoption by establishing a nationwide regulatory framework for crypto trading platforms.
According to local news source 24.kg, Kyrgyzstan’s State Service for Regulation and Supervision of Financial Markets (Gosfinnadzor), a regulatory agency under the Ministry of Economy and Finance, has created a draft law for regulating crypto exchanges.
The latest proposed legislation is said to aim to establish the legal status, functions, and obligations of crypto exchanges operating in Kyrgyzstan, as well as the obligatory registration with the unified state registry.
Crypto exchange service providers must also take steps to prevent illegal activities such as money laundering and terrorism financing, according to the rules.
According to Gosfinnadzor, the new framework will help the Kyrgyz Republic avoid risks and foster the development of innovative technologies and the development of a digital economy.
The guidelines would also enable the creation of a new financial ecosystem that would encompass a broader spectrum of participants, such as qualified investors and businesses, according to the authority.
The new structure is meant to raise investor awareness of crypto exchange operations while also providing new revenue streams for the government.
As previously noted, Kyrgyzstan has attempted to control the cryptocurrency business on several occasions in recent years, introducing rules aimed at both crypto mining and cryptocurrency exchanges.
Kyrgyzstan’s central bank announced in February that it would impose a licensing scheme for cryptocurrency exchanges in order to protect local investors.
