The regime of Kyrgyzstan is moving forrad with cryptocurrency adoption past introducing a national regulatory framework for crypto trading platforms.

Kyrgyzstan's State Service for Regulation and Supervision of Financial Markets (Gosfinnadzor), a regulatory agency operating under the Ministry of Economic system and Finance, has developed a draft provision for regulating crypto exchanges, local news agency 24.kg reported on Wednesday.

The newly proposed regulations reportedly aim to establish the legal status of crypto exchanges operating in Kyrgyz republic, functions, responsibilities and compliance requirements, including the necessary registration with the unified country register. The rules as well crave crypto exchange service providers to ensure measures to counter illicit activities similar money laundering and terrorism financing.

Gosfinnadzor reportedly said that the new framework would reduce risks and help in the development of innovative technologies and the formation of a digital economy in Kyrgyz republic. The rules would besides help to bring about a new financial ecosystem that would include the participation of a wider range of players like qualified investors and businesses, the authority noted.

The new framework is expected to grow investor awareness on crypto exchange operations also as generate new income sources for the national budget.

Related: Old gov't official blames crypto mining for free energy crisis in Kyrgyzstan

Equally previously reported, Kyrgyzstan has sought to regulate the crypto industry multiple times in recent years, initiating regulations that targeted the crypto mining industry too as cryptocurrency exchanges. In February, Kyrgyz republic'due south fundamental bank was planning to introduce a licensing regime for crypto exchanges in a move to protect local investors.