Kyrgyz member of parliament (MP) Karim Khanjeza called for the legalization of cryptocurrency in the country during a parliamentary committee meeting on law and order and combating corruption. During his speech, MP Khanjeza advocated for developing a legal framework for the crypto market and suggested amendments to the draft law to incorporate virtual assets. He said, "nothing is growing as fast as cryptocurrency." He added that their country is perfectly positioned to take advantage of the growing crypto popularity and suggested launching their own national cryptocurrency. He said the government should focus on developing a sovereign national digital currency overlooked …

The government of Kyrgyzstan is moving forward with cryptocurrency adoption by introducing a national regulatory framework for crypto trading platforms. Kyrgyzstan’s State Service for Regulation and Supervision of Financial Markets (Gosfinnadzor), a regulatory agency operating under the Ministry of Economy and Finance, has developed a draft provision for regulating crypto exchanges, local news agency 24.kg reported on Wednesday. The newly proposed regulations reportedly aim to establish the legal status of crypto exchanges operating in Kyrgyzstan, functions, responsibilities and compliance requirements, including the necessary registration with the unified state register. The rules also require crypto exchange service providers to ensure measures …

Amid growing concerns over the energy sector in Kyrgyzstan, a former government official has argued that cryptocurrency mining is a major factor driving the energy crisis. Daniyar Akmatov, former director of the state investment protection organization, the Investment Promotion and Protection Agency, addressed the challenges in Kyrgyzstan’s energy sector at a roundtable in Bishkek, local news agency Tazabek reported on Wednesday. The former official said that crypto mining is causing issues for the country’s energy sector, alongside other factors like the devaluation of the Kyrgyz som and poor promotion of energy investment. “Consumption of electricity due to cryptocurrency mining has …

The National Bank of the Kyrgyz Republic, or NBKR, is reportedly planning to introduce a licensing regime for cryptocurrency exchanges in a move to protect local investors. NBKR chairman Tolkunbek Abdygulov announced that the country’s central bank is planning to start regulating exchange operations involving cryptocurrencies like Bitcoin (BTC), local economic publication Tazabek reports Feb. 12. Abdygulov said that the regulatory initiative aims to safeguard crypto operations in the Kyrgyz Republic and provide investor protections similar to those that are already in place for traditional finance: “The NBKR’s objective is to create conditions for clients, for citizens of the Kyrgyz …

Kyrgyzstan’s central bank has completed the drafting of two bills designed to recognize and regulate the country’s emerging crypto sector. According to an official announcement, the National Bank of the Kyrgyz Republic has opened up the two bills, "On the Processing of Cryptocurrencies" and "On amendments to legislative acts in the field of virtual assets," to public discussion. Interested parties have until Feb. 21 to submit their comments and concerns regarding the legislation. The proposed legislation seeks to recognize cryptocurrency exchanges, outlining that exchanges must be operated by legal entities licensed with the country’s central bank. The bill contains reporting …

The central bank for the Central Asian country of Kyrgyzstan is working on a draft law to regulate the cryptocurrency industry in the country. According to an announcement on Nov. 13, the National Bank of the Kyrgyz Republic is developing a draft law that would regulate cryptocurrency exchanges in consultation with industry stakeholders. The bank stated that the draft law would regulate the sale and purchase of cryptocurrencies with the aim of tackling fraudulent cryptocurrency schemes and financial crimes, as well as safeguarding consumer and investor rights. Among the expected benefits of the forthcoming regulations, the bank notes the improved …

Kyrgyzstan’s acting President and Prime Minister Sadyr Japarov has proposed introducing a blockchain-based system to ensure fair elections in the near future and restore public faith in the democratic process. On Oct. 20, Japarov reportedly told Al-Jazeera television channel reporters: “We have had three revolutions because of unfair elections. If this continues, the unrest and the revolutions will continue. From now on, everything will be fair. I consulted with the Central Election Commission and offered them to introduce the blockchain technology. This system can be implemented in 3–6 months.” Japarov had seized the levers of power to become Kyrgyzstan’s acting …

The central bank of Kyrgyzstan has disabled cross-border transactions on the SWIFT financial network amid widespread unrest over the country’s disputed parliamentary elections. Aida Karabaeva, an official representative of the National Bank of the Kyrgyz Republic, announced a temporary suspension of SWIFT in Kyrgyzstan in a statement on Oct. 7. According to Karabaeva, the bank decided to suspend SWIFT transactions in order to prevent capital outflows from the country and ensure the safety of assets. The executive claimed that the bank is planning to resume SWIFT transactions as soon as the situation in the country stabilizes: “The measures taken are …

Law enforcement authorities in Kyrgyzstan have reportedly detected an illegal cryptocurrency mining farm on the territory of a local free economic zone (FEZ). The State Service for Combating Economic Crimes, an anti-corruption service in the Kyrgyz Republic, has reportedly discovered a large-scale mining farm at FEZ Bishkek. Kyrgyz authorities posted a video of the facility on YouTube on Aug. 7. Government officials are involved During on-site inspections, local enforcement officials found crypto mining devices connected to electricity and the Internet. According to local news agency 24.kg, authorities have launched an investigation into the origins of miners and energy sources. Members …

Lawmakers in the Kyrgyz Republic are considering a bill to tax and regulate cryptocurrency mining activities. The bill, On Amending the Tax Code of the Kyrgyz Republic, seeks to increase government revenue by establishing taxation obligations for miners, in addition to establishing clear definitions for the terms “virtual assets” and “mining” within the context of cryptocurrencies. If passed, the new taxation regime would comprise the first major step taken towards cryptocurrency liberalization on the part of the Kyrgyz Republic, with the country explicitly prohibiting crypto assets as a means of payment in July 2014. Taxing times The proposed law would …

Cryptocurrency and blockchain technology continues to be a global phenomenon, with adoption and utilization cases emerging in almost every corner of the globe. Digital technology has become so popular that it is now a major talking point not only in the financial sector but also in politics and governance. The seven “-stan” countries of Central and South Asia — Pakistan, Kazakhstan, Afghanistan, Kyrgyzstan, Uzbekistan, Tajikistan and Turkmenistan — haven’t shied away from the sweeping digital technology phenomenon. Whether it be revitalizing Afghanistan’s healthcare sector with blockchain adoption or introducing a waiver for crypto mining in Kazakhstan, digital technology utilization appears …

Kyrgyzstan has cut off power to 45 crypto mining firms as they consumed more energy than three local regions combined. Senior energy official Aitmamat Nazarov has warned cryptocurrency mining is not defined under Kyrgyzstan law, local news agency AKIpress reported on Sept. 20. 136 MW of electricity used According to Nazarov, 45 crypto miners consumed 136 megawatts of electricity, which is more than the amount consumed by three Kyrgyzstan regions: Issyk-Kul, Talas and Naryn. Cheap energy pricing Kyrgyzstan has become a popular site for global cryptocurrency mining firms due to cheap energy prices. In August, the country's Ministry of Economy …