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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