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.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related

Decentralized Finance Needs Inter-Blockchain Communication

Whenever we start to turn our minds around the idea of decentralization and how cryptocurrency works, it immediately gets spun towards the idea of blockchain. It is nothing more than a siloed platform that is dedicated to a specific cryptocurrency and works as a Ledger on which transactions taking place in real-time are recorded. Every […]

Brazilian Authorities Want To Legalize Bitcoin

A breath of fresh air comes from Brazil as it makes transitions to engage with crypto-oriented payments in the next few months. According to the Brazilian federal deputy, the whole project is in motion, and there will be an outcome soon enough. On a hilarious note, he said that people would be able to buy […]

Can Whales Manipulate the Cryptocurrency Market?

When you are this much invested in the world of the crypto market, you get to learn things; you get to know or experience different aspects of this vast financial throughput. One of these aspects is the volatility factor of the crypto market; it is bound that if crypto is soaring high in terms of […]

CryptoPayTech ( PaytechNO) Review – Is cryptopaytech.com Scam or Legit?

CryptoPayTech Trading Platform Rating 4.7 Summary Read our CryptoPayTech review at FStar Capital Forex and Cryptocurrency Trading blog, find the answer to your question “is CryptoPayTech scam or legit” and much more! We have checked all the aspects of this broker and we recommend CryptoPayTech for online trading. It is NOT a scam. You can […]