Karim Khanjeza, a Kyrgyz MP, called for cryptocurrency legalization during a meeting of the parliamentary committee on law and order.
MP Khanjeza argued for the development of a legal framework to support the crypto market. He suggested amending the draft law to include virtual assets. He stated that “nothing grows as fast as crypto.”
He said that the country is well-positioned to benefit from growing crypto popularity, and suggested that they launch their own national cryptocurrency. According to a local newspaper, he suggested that the government focus on the development of a sovereign digital currency instead of being overseen by the National Bank.
He advocated the creation of a crypto hub by bringing in highly qualified experts in the field. This strategy was followed by the UAE, which has become a regional hub to support the growing crypto market.
This Central Asian country has made significant progress in regulating cryptocurrency markets and is now considered one of the most crypto-friendly. Bitcoin is a commodity, and can be mined and transacted under commodity laws.
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The government created a national crypto framework in August 2021 to allow crypto exchanges legal status. There are currently no laws that regulate cryptocurrency circulation. The National Bank has only suggested a draft law “on the turnover” for cryptocurrency.
Although the Kyrgyz government began to regulate the crypto mining industry in 2020, there were several crackdowns last summer due to the increasing energy crisis caused by illegal crypto mining. Many pro-crypto mining countries, including Iran and Kazakhstan, faced similar energy crises as a result of illegal crypto mining.