The central bank of this Central Asian country, Kyrgyzstan, is working on a bill to regulate the country’s cryptocurrency industry.

According to an announcement made on November 13, the Kyrgyz National Bank is developing a bill regulating cryptocurrency exchange in consultation with industry stakeholders.

The bank said that the bill would regulate the sale and purchase of cryptocurrencies with the aim of combating counterfeit cryptocurrency schemes and economic crime, as well as protecting consumer and investor rights.

Among the expected benefits of upcoming regulations, banknotes have improved digital financial product development, favorable conditions for the business community, and even the potential implementation of a formal tax system for digital assets.

However, the bank also expects cryptocurrency legislation to have a reasonable share of barriers, saying that the cross-border nature of many private cryptocurrencies will make compliance with laws difficult without the proper infrastructure for monitoring and enforcement.

In fact, the bank says that due to the “lack of regulation and chaotic nature of the cryptocurrency market,” there is no reliable data on how many companies will be subject to the new law.

According to the announcement, the bank expects that strict cryptocurrency regulations will give more confidence in cryptocurrency-related businesses and attract investments without significantly affecting the central government budget.

The bank will accept proposals for the bill by November 27, after which they will be published in the official registry by December 4.

A robust cryptocurrency regulation would go a long way for a politically besieged country. In August 2019, parliament introduced a bill to tax miners on cryptocurrencies, but authorities will cut electricity to miners after a month due to reports of excessive consumption.

Last summer, Parliament continued to debate a robust cryptocurrency tax system, but civil unrest has since undermined previous political initiatives: In October, the main parliament elected a nationalist opposition leader and former parliamentarian Sader Jabarov as the acting president and prime minister. 7.

Source: CoinTelegraph

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