Kyrgyzstan MP Calls For Country’s Own Cryptocurrency

TL;DR Breakdown

• Kyrgyzstan Lawmaker backs Cryptocurrency for legalization
• Cryptocurrency in Kyrgyzstan
• The World’s current adoption of crypto assets

Karim Khanjeza, a member of parliament in Kyrgyzstan, has proposed the creation and legalization of the country’s own cryptocurrency. This recommendation was made on Wednesday during a Kyrgyzstan Parliamentary hearing on law and order, combating crime, and combating corruption, according to the news agency AKI press. The cryptocurrency, according to the MP, is a thriving market that can benefit the Kyrgyz economy. “The rapidly growing cryptocurrency market will provide an opportunity for technological development in Kyrgyzstan,” said the lawmaker.

Khanjeza suggested that the laws that address digital assets be amended. He advocated for the establishment of a government agency to combat cryptocurrency-related crimes, calling it an ‘urgent priority. The MP emphasized India’s intention to become a global hub for virtual assets, claiming that the Kyrgyz Republic can follow suit. To accomplish this, he proposed the hiring of experts in this field, most likely from Russia.

Kyrgyzstan Looks To Regulate Cryptocurrency

In Kyrgyzstan, there are over 67,000 cryptocurrency owners, and the country’s various financial institutions have shown a favorable attitude toward cryptocurrencies. The National Bank of Kyrgyzstan, for instance, proposed two bills to regulate the cryptocurrency sector in January 2021, titled “On the Processing of Cryptocurrencies” and “On Amendments to Legislative Acts in the Field of Virtual Assets.” Moreover, in August of the same year, the State Service for Regulation and Supervision of Financial Markets (Gosfinnadzor) designed a framework for the regulation of cryptocurrency exchanges & platforms.

The Kyrgyz Republic is also known to have the lowest electricity tariff in Central Asia, making the nation an attractive location for crypto mining farms. And so far, the country has explored ways to maximize this development. In 2020, the country’s Ministry of Economy imposed a 15% tax on crypto mining farms with the aim of collecting over $4million every year; this is viewed to be quite significant as the country has a national budget of just over $1billion.

Cryptocurrency And The World At Large

In recent years, the increase in the prices of various crypto assets, such as Bitcoin, Ethereum, Dogecoin, Litecoin – to mention a few, has led to an influx of massive investments in the cryptocurrency market. According to TripleA, a cryptocurrency exchange company, the world currently has over 300 million cryptocurrency owners, and over 18,000 businesses use a crypto payment system. Furthermore, according to Bybit, governments around the world collectively own approximately 260,000 Bitcoin tokens, with the Bulgarian government holding the largest share of about 213,000 Bitcoin.