Kyrgyz Central Bank warns of illegality of using cryptocurrencies for payments

The National Bank of Kyrgyzstan warned of potential risks associated with cryptocurrencies.

The regulator emphasised that the only means of payment in Kyrgyzstan is the som:

“The use of virtual assets, particularly in the purchase and sale of goods and services as a means of payment within Kyrgyzstan, will constitute a violation of our state’s legislation.”

The statement by the National Bank also notes cryptocurrency-related risks stemming from a lack of collateral, the supervisory body and price volatility.

As reported in 2021, the Kyrgyz central bank announced plans to license cryptocurrency-exchange operators, and the local Financial Market Regulation and Oversight Service developed a draft regulation for Bitcoin exchanges.

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