Bank Of Kyrgyzstan Issues Warning About Cryptocurrencies Crypto Payments Regulation Bitcoin News

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

National Bank of Kyrgyzstan Urges Caution With Cryptocurrency

The central bank of Kyrgyzstan recently stated that cryptocurrencies and other virtual currencies are growing in Kyrgyzstan. The regulator reminded people that they can't use them to buy or trade goods and services. However, the Kyrgyzstani SOM is the only legal tender in the country. Crypto

Local media quoted the monetary authority as warning about the risks associated with decentralized digital currencies. Explorer "No one, as an exception, is liable to cryptocurrency. It does NOT have financial support. It doesn't have any currency or other assets and has no real worth."

This creates high risks of exchange rate volatility and loss of value, the National Bank of Kyrgyzstan (NBK) elaborated. It also pointed to the risks with settlements in cryptocurrency, stemming from its features and the absence of a "controlling central body." The NBK further stated:

We advise citizens to be careful when using cryptocurrency for payments or settlements. Users assume all possible risks and negative consequences when making settlements using cryptocurrency and virtual assets.

The statement by the authority follows a central bank of Kazakhstan that announced last week that it was examining the crypto-market, while stating it's too early for legalization of cryptocurrencies like Bitcoin.

Central Asia, where the two countries are situated, attracted crypto businesses last year, especially miners after China started cracking down on the industry in May, 2021. Both countries have tried to restrict mining by closing down illegal crypto farms and increasing electricity rates for authorized miners. Miners are blamed for power shortages, and damage to the electricity network.

Do you think the National Bank of Kyrgyzstan will change its policy toward cryptocurrencies in the near future? Please leave your feedback in the comments section below.