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MP proposes to create cryptocurrency exchanges in Kyrgyzstan

Member of Parliament of Kyrgyzstan Zhyrgalbek Turuskulov proposes to create cryptocurrency exchanges in Kyrgyzstan. The bill has been submitted for public discussion.

According to him, the main motive for the creation and use of cryptocurrency assets is the ability to make transactions without participation of a third party and creation of alternatives to traditional financial instruments. At the same time, the cryptoassets market, as a rule, is not regulated by some central authority, it does not have clear mechanisms of legal protection or monitoring. According to the MP, it lacks transparency and can be used for money laundering, insider trading, fraud, price manipulation and market manipulation.

For exchange trading in cryptoassets, the bill provides for introduction of «cryptocurrency exchange» notion.

Zhyrgalbek Turuskulov believes that cryptocurrency exchanges will contribute to the development of a new industry of digital assets due to their main function — trading. «It will help attract billions in investments in this area. This is what attracts traders, many of whom have come to this market with years of experience in work with traditional assets. The draft law provides for the relevant requirements and conditions for the implementation of the activities of cryptocurrency exchanges on the territory of Kyrgyzstan. This will allow attracting large traders and ensure the exit of Kyrgyzstan to the international markets of cryptoassets,» the deputy said.

The presence of cryptocurrency exchanges also helps make cryptocurrencies an extremely liquid asset. In a matter of seconds, you can buy, sell cryptocurrency, enter this market — or quickly exit it.

Zhyrgalbek Turuskulov

He added that the total cryptocurrency market capitalization reached 240 billion euros. Almost all countries are involved in the regulation of the cryptoassets market.

The bill introduces definitions of digital financial assets, which include cryptoassets and tokens, and also legislates the main directions of state policy in the field of cryptoassets turnover.

The bill gives concepts such as industrial mining and private mining.

Zhyrgalbek Turuskulov proposes to determine the rights and obligations of legal entities and individuals in the field of cryptoassets turnover in order to reduce the risks of owners of digital financial assets and protect citizens when making transactions with cryptoassets, introduce not only an electronic register of miners, but also a form for licensing the activities of a service provider and prescribe requirements for advertising in the field of cryptoassets turnover.