More nations have started to adopt digital assets and declare them as legal tenders or at the very least indicate that this could be the case in the future. In recent reports, Karim Khanjeza, Kyrgyz Member of Parliament, called for crypto’s legalization in the country during a parliamentary committee meeting on combating corruption and law and order.
Kyrgyzstan has established itself as one of these nations that have a friendly policy towards crypto assets. The Kyrgyz government has made significant progress in regulating the crypto market with Bitcoin at its centre. The most dominant crypto asset has been deemed a commodity by the government and citizens are allowed to transact or mine the asset under commodity laws.
During the Kyrgyz parliamentary meeting, MP Khanjeza spoke in favour of cryptocurrency and advocated for the development of a legal framework for the market. The MP recommended certain amendments to the draft law for incorporating digital assets, stating cryptocurrency is growing at an exceeding rate.
He also spoke about building a crypto hub in the country by acquiring highly qualified specialists into the field and orienting additional staff, a similar strategy followed by UAE which had plans to become a crypto market hub.
According to MP Khajenza, Kyrgyzstan is perfectly suited to launching its own national cryptocurrency by taking advantage of the growing popularity of virtual coins. He added the Kyrgyzstan government should focus on the development of a national virtual currency overlooked by the National Bank.
The Kyrgyz government has a national crypto framework that provides the asset class with legal status in the country even though there are no laws regulating the circulation of cryptocurrencies. The government has taken steps toward regulating the crypto mining industry in early 2020, however, it lead to a crackdown on illegal mining rigs due to the energy crises faced by the nation.
