Kyrgyzstan Introduces Framework for National Crypto Treasury
Kyrgyzstan has taken a significant step towards establishing a comprehensive framework for a national crypto treasury, introducing a draft law that outlines the creation of a state cryptocurrency reserve and state mining operations. This move is part of the country’s efforts to promote the development of its cryptocurrency sector and provide a more robust regulatory environment for investors and businesses.
The draft law, which was presented by Minister of Economics Bakyt Sydykov, aims to switch the regulatory oversight of the crypto sector to a presidential committee, providing a more centralized and coordinated approach to regulation. The law also establishes a state cryptocurrency reserve, which will be a portfolio of digital assets acquired, stored, and managed by the government.
Key Provisions of the Draft Law
The draft law includes several key provisions, including the creation of a state cryptocurrency reserve, state mining operations, and a regulatory sandbox for innovative digital asset solutions. The state cryptocurrency reserve will be a diversified portfolio of digital assets, including Bitcoin, other established cryptocurrencies, and stablecoins supported by fiat currency and tokenized real assets.
The law also specifies that state-supported mining operations will be subject to existing energy tariffs, ensuring that the government is held to the same standards as private miners in terms of energy consumption and supply. Additionally, the regulatory sandbox will provide a controlled and transparent environment for experimenting with new digital asset solutions, including those that combine digital units with material assets.
Protecting Investors and Maintaining Market Stability
In addition to the accumulation of assets, Kyrgyzstan is also focused on protecting investors and maintaining market stability. The law requires that only secure assets be issued, and that all business activity maintains market stability and transparency. This approach is designed to provide a more secure and stable environment for investors and businesses, while also promoting the development of the country’s cryptocurrency sector.
Overall, Kyrgyzstan’s introduction of a framework for a national crypto treasury is a significant step towards establishing a more comprehensive and robust regulatory environment for the cryptocurrency sector. By providing a clear and coordinated approach to regulation, the country is well-positioned to attract investment and promote the development of its cryptocurrency sector.
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