Kyrgyzstan to Launch a National Cryptocurrency

Kyrgyzstan Crypto

Welcome back to the Tribe! In this post we dive into the Kyrgyzstan Crypto asset that the country is planning to launch.

Nothing should be considered investment or financial advice. Enjoy the ride!

Kyrgyzstan Crypto

Last year Kyrgyzstan introduced regulations on crypto exchanges and the crypto mining industry but the circulation of crypto assets remained unregulated. Now there are calls to legalize crypto assets and launch a national cryptocurrency.

Regulation of Crypto Exchanges And Crypto Mining

According to a report by a local news outlet 24.kg in august last year, the government announced plans to introduce regulations on crypto assets.

This plan came as a result of concern by the cabinet ministers about crypto exchanges and it led to the preparation of a draft regulation by the state service for regulation and supervision of the financial markets.

According to the developers, this will help determine the legal framework for the circulation of crypto assets through the introduction of state regulation.

“This will reduce risks and assist in the development of innovative technologies and the formation of a digital economy, as well as lay the foundation for the development of a systemic market and create prerequisites for participation for a wider range of participants, including qualified investors and businesses,”

the department believes.

The draft regulation established the status, functions, rights, and obligations of the crypto exchange, as well as the mandatory requirements for the activities of the crypto exchange, the procedure for their state registration in the Unified State Register.

It also provided the procedure for the requirement and responsibility of crypto exchanges in terms of countering the financing of terrorist activities and the legalization (laundering) of criminal proceeds.

Nothing is Growing as Fast as Cryptocurrency

In a report by a local news outlet AKIPRESS.COM, a Kyrgyzstani member of parliament Karim Khanjeza stated that,

“Nothing is growing as fast as cryptocurrency.”

He gave this verdict during the meeting of the parliamentary committee on law and order, fighting crime, and combating corruption.

In the meeting, Khanjeza and other MPs considered draft amendments to the law in the field of crypto assets to boost the country’s chances of being a regional crypto hub.

Furthermore, he stated that “India has already announced that it will become a global hub for virtual assets,” In a sequel to this he advised appointing an authorized body against the legalization of criminal proceeds.

National Cryptocurrency Controlled by The National Bank

The country, according to the MP, has a unique opportunity now to create and legalize such a hub in Kyrgyzstan. He suggested attracting highly qualified specialists in this field, possibly Russian specialists to help set this up.

The claim he made is not verifiable, because crypto assets remain unregulated in India, and crypto trading and mining activities face huge taxes by the government.

Moving on MP Karim Khanjeza suggested that the country introduce its own cryptocurrency and legalize it. He said:

“You can introduce your own cryptocurrency and have the National Bank and financial police control it.”

The move will be the right step for the Central Asian country which has positioned itself as a crypto-friendly nation. Because its commodity laws allow the mining and transacting of Bitcoin as a commodity.

Other News – Ronin Bridge Exploited

Several days after the initial attack, the Ronin Network team has revealed that the sidechain was exploited by an unknown hacker. The postmortem audit discovered that 173,600 ETH and 25.5 million USDC was stolen from the Ronin bridge in two transactions.

Ronin’s team has halted the bridge and limited access to the Katana dex until the matter is resolved. The project leads have also contacted relevant law enforcement authorities and alerted exchanges.