Kyrgyzstan MP suggests crypto legalization and CBDC in the nation

It is undeniable that crypto and Blockchain technology is a bubble as many say and the latest statement by Kyrgyzstan member of parliament (MP) Karim Khanjeza agrees with that. However, the MP highlighted the urgent need for the legalization of cryptocurrency in the nation during a parliamentary committee meeting on law and order and fighting corruption.

While addressing his speech, Khaneja Proposed the development of a regulatory framework for the digital asset industry and suggested several amendments to the draft law to include cryptocurrency. He stated:

“Nothing is growing as fast as cryptocurrency.”

Kyrgyzstan is well prepared

He went on to say that Kyrgyzstan is well prepared to take advantage of the growing popularity of cryptocurrencies, and he offered that they develop their own national cryptocurrency like CBDC. According to a local daily, he stated the government should focus on building a sovereign national digital currency that would be overseen by the National Bank.

He also pushed for the establishment of a crypto hub in Kyrgyzstan by bringing in highly trained experts in the sector, a strategy used by the UAE to become a regional hub for the burgeoning crypto market. Recently, the economic capital of Italian-speaking Southern Switzerland, the City of Lugano, has planned crypto adoption in the form of tax payments after teaming up with Tether.

The Central Asian country has established itself as one of the most crypto-friendly countries, with tremendous development in market regulation. Bitcoin is classified as a commodity, which means it can be mined and traded under commodity regulations.

The government established a national crypto framework for a cryptocurrency exchange in August 2021, granting them legal recognition in the nation. There are no rules to control the circulation of cryptocurrencies, and the National Bank has simply proposed a draught law “on the turnover of cryptocurrencies.”

The Kyrgyzstan government began working on regulating the crypto mining business as early as 2020, but the country’s rising energy issue, exacerbated by illegal crypto mining, prompted repeated crackdowns last year. As TheCoinRise reported in October last year, Kyrgyzstan announced an increase in Electricity tariffs for crypto miners.