- Kyrgyzstan doubles down on increased crypto consumer protection
- The nation is set to launch two new bills to fight fraudulent crypto activity
- All crypto service provides must hold a valid license to provide their services
The bills will create a safe forum for the nation’s crypto users. They aim to find and erase fraud, money laundering, and terrorism finance.
NBKR sees that the demand for cryptocurrency has risen in the country. Its citizens view cryptocurrency as an answer to swifter global payments.
However, before they fully open their doors to crypto trades, they are first taking every precaution they can to protect their assets.
Hence, the first bill states the need for a new system to regulate the turnover of crypto tokens. It says that a new entity will take on the role of monitoring all crypto exchange accounts.
The second bill cements the legal use of crypto coins as assets. It marks ‘virtual assets’ as an object of civil rights under the Civil Code of the Kyrgyz Republic.
Furthermore, the nation also initiated the Tax Code as a norm for taxing crypto-related services. A new exchange bureau will take on the task of tax collection. This gives the nation a legal path to catch frauds and crooks.
And finally, the second bill also makes it compulsory for all cryptocurrency exchange operators to get licensed. These services must henceforth, apply for permits if they wish to offer their services.