Kyrgyzstan reportedly introduced regulations for cryptocurrency exchanges

The government of the Kyrgyz Republic is advancing the adoption of cryptocurrencies by introducing a national regulatory framework for crypto trading platforms.

Kyrgyzstan’s National Financial Market Supervisory Authority (Gosfinnadzor) is a regulatory agency under the Ministry of Economy and Finance. It has formulated draft terms for the regulation of cryptocurrency exchanges. The local news agency 24.kg Report Wednesday.

According to reports, the newly proposed regulations aim to establish the legal status, functions, responsibilities, and compliance requirements of cryptocurrency exchanges operating in Kyrgyzstan, including the necessary registration in a unified national registry. The rule also requires cryptocurrency transaction service providers to ensure that measures are taken to combat illegal activities such as money laundering and terrorist financing.

According to reports, Gosfinnadzor stated that the new framework will reduce risks and contribute to the development of innovative technologies and the formation of a digital economy in the Kyrgyz Republic. The authorities pointed out that these rules will also allow a new financial ecosystem to include the participation of a wider range of participants such as qualified investors and enterprises.

The new framework is expected to increase investors’ awareness of the cryptocurrency trading business and create a new source of income for the national budget.

related: Former government official blames crypto mining for energy crisis in Kyrgyzstan

As previously reported, Kyrgyzstan has repeatedly sought to regulate the encryption industry in recent years, and has initiated supervision. Targeting the crypto mining industry And cryptocurrency exchanges. In February, the Central Bank of Kyrgyzstan planned Introducing a licensing system for cryptocurrency exchanges To protect local investors.