• Wed. Jun 22nd, 2022

Bank of Kyrgyzstan issues warning on cryptocurrencies and crypto payments – Regulation Bitcoin News

ByHazel R. Lang

Jun 16, 2022

Amid the growing popularity of cryptocurrencies in Kyrgyzstan, the country’s central bank has reminded citizens of the risks associated with digital assets. The monetary authority has also warned that crypto payments are illegal in the Kyrgyz Republic.

National Bank of Kyrgyzstan urges caution with cryptocurrency

Cryptocurrencies and other virtual assets are increasingly spreading in Kyrgyzstan, the country’s central bank recently noted. The regulator reminded that using them to buy or sell goods and services is still illegal, with the Kyrgyz som remaining the only legal tender in the country.

Quoted by local media, the monetary authority also issued a warning about the risks associated with decentralized digital currencies. “No one, as a rule, is responsible for cryptocurrency. It has no financial backing. It has no real value due to the fact that it is not tied to any currency or other asset “, did he declare.

This creates high risks of exchange rate volatility and loss of value, the National Bank of Kyrgyzstan (NBK) explained. He also highlighted the risks associated with cryptocurrency settlements, stemming from its characteristics and the lack of a “central control body”. The NBK further stated:

Therefore, we recommend citizens to be cautious and refrain from using cryptocurrency for payments and settlements. Users bear all possible risks and negative consequences when making settlements using cryptocurrency and virtual assets.

The authority’s statement comes after neighboring Kazakhstan’s central bank announced last week that it was reviewing the crypto market while stressing that it was too early to talk about legalizing cryptocurrencies like bitcoin. .

Central Asia, where both countries are located, attracted crypto businesses last year, especially miners after China began cracking down on the industry in May 2021. Both countries have since attempted to limit mining by shutting down illegal crypto farms and increasing electricity rates for licensed mining companies. Miners were blamed for power cuts and damage to power grids.

Keywords in this story

Bank, Central Asia, Central Bank, Crypto, Cryptocurrencies, Cryptocurrency, Kazakhstan, Kyrgyzstan, legal tender, means of payment, national bank, Payments, Settlements, Attention

Do you expect the National Bank of Kyrgyzstan to change its policy towards cryptocurrencies in the future? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who loves Hitchens’ quote: “Being a writer is who I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image credits: Shutterstock, Pixabay, Wiki Commons

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