The central bank of Kyrgyzstan is working on a draft law to regulate the cryptocurrency industry in the country.
It has been reported that the National Bank of the Kyrgyz Republic is developing a draft law that would regulate cryptocurrency exchanges in consultation with industry stakeholders.
However, the bank stated that the draft law would regulate the sale and purchase of cryptocurrencies with the aim of tackling fraudulent cryptocurrency schemes and financial crimes, as well as safeguarding consumer and investor rights.
The report said that among the expected benefits of the upcoming regulations, the bank notes the improved development of digital financial products, favorable conditions for the business community, and even the possible introduction of a formal tax regime for digital assets.
The National Bank of the Kyrgyz Republic is preparing a draft law that could have major implications for #Bitcoin -related businesshttps://t.co/LPN0YV6a2O — ByteMax Official (@ByteMaxGlobal) November 16, 2020
The bank also expects crypto legislation to come with its own share of obstacles by stating that the cross-border nature of many private cryptocurrencies will make the law difficult to enforce without the proper infrastructure for monitoring and implementation.
The bank states:
“Due to the lack of regulation and the chaotic nature of the cryptocurrency market, there is no hard data on the number of businesses that would be subject to the new law.”
Likewise, the bank expects explicit crypto regulations to provide more certainty for crypto-related businesses and attract investment without a significant effect on the government budget.
Thus, the bank will accept proposals for the draft law until November 27, after which they will be published on the official register by December 4.