The Republic of Kyrgyzstan, known for its beautiful lakes and scenic mountains is now working towards making an impact in the world of blockchain technology. A report published by law firms John Tiner & Partners (Geneva) and John Tiner and Partners (Bishkek) on behalf of Kyrgyzstan’s International Financial Center Development Agency claims that the nation is one of the most blockchain-friendly places in the world.
Over the past few months, we have seen nations such as Singapore, India and Dubai work towards becoming the blockchain-hubs of their region and Kyrgyzstan is now the latest name in the list. This recent report claims that the country’s legal system is such that it would allow the blockchain technology to develop freely. There are no laws or regulations imposed on the blockchain industry in Kyrgyzstan.
Moreover, the report also claims that under the law of Kyrgyzstan, there are no restrictions when it comes to cryptocurrency trading or mining in the nation. ICOs too, are allowed to function freely in the country. However, the only regulation that those involved in the crypto-trade in the nation have to consider is that they must pay their taxes. While the legal system is such that it allows the blockchain and crypto businesses to thrive, the financial system also welcomes this innovation. The Kyrgyz Stock Exchange has been developing a project under which it would be possible to easily trade securities and make real-time settlements!
In another bid to make the country more blockchain-friendly, the government too has started off with a major digitization drive, which will focus on getting all public records on a blockchain platform, especially when it comes to public tenders. A similar effort was recently proposed in Mexico too, where public tenders were to be put up on a blockchain system to ensure that the entire process is transparent and corruption free. The Government wants to transform the nation into a hub for cryptocurrency and blockchain companies by offering liberal laws yet regulations which benefit the nation in form of taxes.
An excerpt from this aforementioned report reads:
“Without a need for legislative reforms, Kyrgyzstan can now satisfy the demand of global crypto-investors to deal with blockchain-based assets on a firm legal basis. Having said that, we are fully in agreement with the position of the National Bank that non-professional investment of savings into crypto-assets carries an unacceptable risk. The introduction of blockchain technologies can speed up securities settlements, optimize state procurement procedures and make the country a regional centre for securities offerings by startups.”
This kind of a liberal approach is rare in the region where Kyrgyzstan is located. The neighbouring country of Kazakhstan had recently been reported to be planning on banning crypto-trade in the nation. Moreover, with their plan to list ICOs in traditional stock exchanges, we may just witness a number of companies flocking to the Republic of Kyrgyzstan over the next few years.