Kyrgyzstan Enacts Legislation for Cryptocurrency Reserve and Tokenized Asset Framework

The Kyrgyz parliament has recently approved a bill designed to establish a legal framework for cryptocurrencies and tokenized assets. This novel legislation seeks to govern the issuance, trading, and utilization of these digital assets within the country. The new law specifies the requisites for registering cryptocurrency exchange platforms and digital asset custody service providers. The law also places obligations on market participants to prevent money laundering and terrorist financing. This legislation is anticipated to attract foreign investment into Kyrgyzstan’s cryptocurrency sector and foster the advancement of its digital economy. Moreover, the law is intended to safeguard investors and users from potential risks associated with cryptocurrencies. This action signifies a pivotal moment in Kyrgyzstan’s endeavors to embrace financial technology and bolster innovation in the financial sector.