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An MP in Kyrgyzstan Suggests Making Cryptocurrency Legal

An MP in Kyrgyzstan Suggests Making Cryptocurrency Legal

Karim Khanjeza, a member of the Kyrgyzstan parliament said that the country should create its own cryptocurrency and make it legal for citizens. 

Creating a crypto center in Kyrgyzstan is something he feels would help Kyrgyzstan become more technologically advanced. In recent years, cryptocurrency and cryptocurrency mining has grown in popularity in the country.

He believes that a national coin could help his country capitalize on the growing interest in cryptocurrencies. A local newspaper quoted him as saying that the government should put its efforts toward creating a national digital currency that would be independent of the National Bank.

As the United Arab Emirates and other countries have done, he urged the creation of a crypto hub in the country by recruiting highly trained individuals in this sector.

Crypto-friendly regulations

Crypto-friendly Central Asian country has made tremendous progress in regulating the crypto business. Under commodity rules, Bitcoin is permitted to be mined and traded.

A strategy that has been employed by nations like the UAE to develop a regional center for the growing crypto market was also pushed for in the country’s capital by bringing in highly trained individuals in this industry.

Having made significant progress in regulating the industry, the Central Asian country has positioned itself as a jurisdiction that welcomes digital currency ventures. Commodity laws allow the mining and trading of Bitcoin, which is a kind of currency.

August 2021 saw the establishment of an official framework for cryptocurrency exchanges in the country. The National Bank, on the other hand, has presented a draught regulation “on the turnover of cryptocurrencies,” which would set limits for how cryptocurrencies may be exchanged.

Energy shortages due to mining

There were many crackdowns on cryptocurrency mining in Kyrgyzstan last year due to increased energy costs and unlawful mining, which the Kyrgyz government had planned to regulate as early as 2020. 

Kazakhstan and Iran, two of the most pro-crypto mining nations in the world, have also encountered energy shortages due to illicit crypto mining.

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