Central Bank of Kyrgyzstan Set To Issue Licenses For Country’s Crypto Exchanges

Kyrgyz Republic’s central bank is willing to provide the same level of security that traditional finance already provides to crypto-investors. Moreover, the central bank of Kyrgyzstan intends to launch the licenses for crypto exchanges.

The Kyrgyz Republic National Bank (NBKR) aims to implement a licensing scheme for digital currency exchanges in a bid to secure local investors.

On February 12, the local news media outlet reported that Tolkunbek Abdygulov, Deputy Prime Minister of the Kyrgyz Republic, announced that the Central Bank of the country has plans to start controlling the trading of cryptocurrencies such as Bitcoin (BTC).

Crypto Operations In The Kyrgyz Republic

Abdygulov said that the regulatory initiative targets safeguarding crypto operations in the Kyrgyz Republic and providing investors with similar security as they offer to those in traditional finance.

While illustrating the objective of NBKR, he said that the goal of the NBKR is to generate conditions for citizens of the Kyrgyz Republic. Like if you are willing to purchase Bitcoin, you just need to visit an exchange office and pay for your Bitcoin. He said that there is no chance of losing money in an exchange that has an NBKR license. For cryptocurrencies, there is the aim to do the same.

Abdygulo has also warned about crypto Investment Risk as well in his comments. He said that Despite NBKR’s ambitious plans to assist local people with a safe investment in digital currencies, the central bank continues to alert the public of the risks raised by crypto investments. For example, if Bitcoin reached $50,000 someday, tomorrow it could be dropping to $20,000. And you will exhaust all the money you have spent.

Two Bills: Cryptocurrencies Processing & Virtual Assets Processing

The Kyrgyz government introduced a draft crypto bill in November 2020, and after that, in the month of January 2021, it proposed two more bills for changes to the laws of virtual assets, “Cryptocurrencies Processing,” and “Virtual Assets Processing.”

Abdygulov said that by the end of 2021, the Kyrgyz authorities aim to pass the bills. Kyrgyzstan often tried to control crypto mining operations in Kyrgyzstan, apart from general legislative attempts on crypto. However, according to Abdygulov, no such regulations have been implemented so far.

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