The National Bank of Kyrgyzstan, or NBKR, is reportedly planning to introduce a cryptocurrency exchange licensing system to protect local investors.

NBKR Chairman Tolkunbek Abdygulov announced that the country’s central bank plans to begin regulating exchange transactions with cryptocurrencies such as Bitcoin (BTC), local financial bulletin Tazabek reported on February 12.

Abdegulov said the regulatory initiative aims to protect cryptocurrencies in Kyrgyzstan and provide protection for investors, such as those already in existence for conventional funding:

“The purpose of the NBKR is to create conditions for clients for citizens of Kyrgyzstan. If you want to buy bitcoins – just go to the exchange office, pay money and get bitcoins […] Today you sell it, buy dollars – if they have an office Money exchange is licensed by the NBKR, so there is no risk of losing money. It’s the same with cryptocurrencies. ”
Despite the NBKR’s ambitious plans to help the local population to invest safely in cryptocurrency, the central bank continues to warn the public about the high risk of investing in cryptocurrency. “If Bitcoin price hits $ 50,000 yesterday, it could drop to $ 20,000 tomorrow. All your invested money will be burned, ”Abdelguluf warned.

Following the introduction of a bill on encryption in November 2020, the Kyrgyz government submitted two bills “On the processing of cryptocurrencies” and “On amendments to the legislation regarding virtual assets” for public discussion in January 2021. The Kyrgyz authorities expect Abdigulov to receive said closing of accounts by the end of 2021.

In addition to general legislative measures for cryptocurrencies, Kyrgyzstan is also seeking to regulate cryptocurrency mining in the country. However, according to Abadzhulov, the corresponding resolution has not yet been adopted.

Source: CoinTelegraph