The National Bank of the Kyrgyz Republic (NBKR) announced its New Year’s plans for the national crypto industry. You are in the process of putting forward two drafts regulating the country’s exchanges, aimed at combating terrorism, money laundering and protecting consumers.
The Kyrgyz Central Bank will launch two crypto bills to fight terrorist financing and fraud
According to Sputnik KyrgyzstanThe central bank’s bills hope to introduce a range of anti-money laundering (AML) and anti-terrorist financing (CFT) measures that should compel local crypto exchanges to report their activity. The country wants to reduce the risk of financing terrorist activities and reduce the inflow of crime.
One of the motivations behind the introduction of such crypto bills is the growing interest in cryptocurrencies in the country, said the NBKR, as most of its citizens nowadays see it as a widespread investment vehicle and a solution for cross-border payments.
However, the central bank provided the following issues that it is expected to resolve with one of the bills by monitoring transactions made through the country’s crypto exchanges:
“Lack of a favorable environment for technology and business development; the emergence of fraudulent systems, the risks of terrorist financing and legalization (money laundering) of the proceeds of crime, and the outflow of capital; Protection of consumer and investor rights. “
I’m trying to legally define crypto terms
However, the second bill also aims to force local exchanges to adhere to a legal framework to combat crypto fraud, adhere to a crypto-related tax system, apply for operating permits that should be applied for from the NBKR, and also terms such as “Virtual Asset” within the Civil Code as well as “Cryptocurrency” and “Cryptoassets”.
According to local media, the proposed regulation aims to restrict the right of legal entities and individuals to participate in the circulation of cryptocurrencies across the country, with the exception of exchanges and crypto miners. However, this point has yet to be defined in a final draft as its definition is ambiguous.
On August 11, 2020, news.Bitcoin.com reported that Kyrgyzstan proposed a 15% tax on Bitcoin (BTC) Mining to raise money to help fight the coronavirus pandemic in the nation.
What do you think of the upcoming crypto bills in Kyrgyzstan? Let us know in the comments below.
Photo credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or an invitation to make an offer to buy or sell, or a recommendation or approval of products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.