Kyrgyz MP Karim Khanjeza called for the legalization of cryptocurrencies in the country during a meeting of a parliamentary committee on law and order and the fight against corruption.
In his speech, MP Khanjeza advocated for a legal framework for the crypto market and proposed changes to the draft law to include virtual assets. "Nothing grows faster than cryptocurrencies," he said.
He added that their country is well positioned to take advantage of the growing popularity of cryptocurrencies and suggested launching their own national cryptocurrency. According to a local daily, he said the government should focus on developing a sovereign national digital currency that has been neglected by the national bank.
He also advocated the establishment of a crypto hub across the country by hiring highly qualified experts in the field, a strategy followed by countries like the UAE to become a regional center for the growing crypto market.
The Central Asian nation has positioned itself as one of the crypto-friendly countries, making significant strides in regulating the market. Bitcoin is considered a commodity and is allowed to be mined and traded under the Commodities Act.
In August 2021, the government introduced a national cryptocurrency framework for cryptocurrency exchanges, giving them legal status in the country. However, there is no law to regulate the circulation of cryptocurrencies, only the “Draft Law on Cryptocurrency Transactions” proposed by the National Bank.
The Kyrgyz government set out to regulate the cryptocurrency mining industry back in 2020, however, the growing energy crisis aided by illegal cryptocurrency mining led to multiple crackdowns last year. Most pro-crypto mining countries, including Kazakhstan and Iran, are facing a similar energy crisis due to illegal crypto mining.