Central Bank of the Kyrgyz Republic is Planning to Regulate Crypto Exchanges

The national bank of Kyrgyz Republic (NBKR) wants to diminish the risk of losing money by giving licenses to cryptocurrency exchanges in the country. The initiative of the central bank will provide security and protection to investors regarding crypto investment.

Exchanges will Get Licenses

According to Tolkunbek Abdygulov, the chairman of National Bank of the Kyrgyz Republic, said that the bank would regulate exchanges dealing with cryptocurrencies such as Bitcoin. Crypto investors will enjoy the money protection similar to financial security in the traditional world.

On the other hands, the central bank also reminds people of the high risks attached to crypto assets. Abdygulov explained by giving an example that if the price were standing at $50,000 at the time, it would drop to $20,000 in the next moment.

The government wants to regulate the crypto industry in the Republic by introducing comprehensive legislation bills. In January 2021, the government has rolled out two bills entitled “On Amendments to Legislative Acts in the Field of Virtual Assets” and “On the Processing of Cryptocurrencies.” The bill will be approved by the legislative body of Kyrgyzstan by the end of the year, according to Abdygulov.

The government also tried to regulate the mining sector by introducing tax charter for miners. The bill regarding crypto mining was first presented in August 2019 but was not passed at the time. According to the bill, the miners will be obliged to give 15% of their profits to the government. According to an estimate, the mining sector’s taxation would expand the country’s annual budget by $4.2 million.

Many countries are willing to regulate crypto assets, but some are banning crypto operations. India, the second-largest country by population, may restrict usage of cryptocurrency in the future. Bloomberg Quint reported that an anonymous personality told that the central bank would likely put a ban on cryptocurrency. It is also revealed that the Indian government will give some time to crypto holders to liquidate their assets. However, no official announcement has been unveiled so far on the part of the Reserve Bank of India (RBI).

According to some reports, Reserve Bank of India is working on the development of central bank digital currency. However, the development is in the initial phases.

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