Kyrgyz MP Karim Khangaze called for the legalization of cryptocurrency in the country during a meeting of the parliamentary committee on law and order and the fight against corruption.
In his speech, Representative Khangazeh called for the development of a legal framework for the cryptocurrency market and proposed changes to the bill to include virtual assets. He said: “Nothing is growing as fast as cryptocurrencies.”
He added that their country is in an ideal position to take advantage of the growing popularity of cryptocurrencies and suggested launching its own national cryptocurrency. He said the government should focus on developing a superb national digital currency that the National Bank had overlooked, according to a local daily newspaper.
He also called for building a crypto hub in the country by hiring highly qualified professionals in the field, a strategy that countries like the UAE follow to become a regional hub for the growing crypto market.
The country Central Asia has established itself as one of the crypto-friendly countries with significant progress in market regulation. Bitcoin is a commodity and its extraction and handling is permitted under commodity law.
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In August 2021, the government introduced a national cryptocurrency structure for cryptocurrency exchange, giving them legal status in the country. However, there are no laws governing cryptocurrency trading, and it is only a draft law “On the circulation of cryptocurrency”, proposed by the National Bank.
The Kyrgyz government began work to regulate the cryptocurrency mining industry as early as 2020, but the growing energy crisis driven by the illegal mining of cryptocurrencies has led to several breakdowns in the past year. Most countries that support cryptocurrency recovery, including Kazakhstan and Iran, have faced similar energy crises due to illegal cryptocurrency mining.