A draft law in Kyrgyzstan proposes expanding the capabilities of banks and financial institutions to work with virtual assets. The bill has been submitted for public discussion.
The document introduces amendments to the Law «On Virtual Assets.» If adopted, banks, non-bank financial credit organizations, and other entities regulated by the National Bank would be officially allowed to provide services for buying, selling, and exchanging cryptocurrencies.
Currently, such institutions are only permitted to perform limited operations, including transfers, storage, and management of virtual assets, as well as financial services related to their placement. Direct purchase and exchange of cryptocurrencies are still prohibited.
According to the explanatory note, the authorities expect that legalizing these services will increase the turnover of virtual assets, improve transparency of operations, and integrate crypto assets into the country’s traditional financial system.
The authors of the draft also anticipate higher tax revenues, increased foreign investment, and the creation of new jobs in the financial technology sector.
In addition, the document notes that interest in cryptocurrencies among citizens and businesses has grown significantly in recent years, and expanding banking services could help legalize and better structure the virtual asset market in Kyrgyzstan.
