The impending boom of cryptocurrency has meant that several vices have come with the market’s progress that didn’t get attention this much a few years ago. From crypto scams, sim swapping scams, and hacks suffered by several crypto wallets, the list of these unneeded negative events have been endless.
This has gotten the attention of several top government financial bodies of many countries, who have either called for the ban or regulation of cryptocurrency trading. The Central Bank in Kyrgyzstan is now the latest financial regulatory body considering the crypto exchange license operating in the country, as against banning them.
The new Licensing comes with NBKR insurance
The Chairman of the NBKR, Tolkunbek Abdygulov, in his statement to the press last week, has revealed that the apex financial regulatory body is considering these options due to the high rate of crypto frauds in the country. Abdygulov explained that the financial regulatory body was contemplating banning the operations of these crypto exchanges in the country but has had to consider the economic impact on its citizens, who are crypto traders and investors.
In explaining the Financial Suprema, he explained that the unregulated nature and non-insurance nature of cryptocurrencies had poised them as risky investments, where individuals could lose fortunes in split seconds. The advantage that the new regulation will provide for the crypto exchange is that their investments will be insured against any loss of all kinds, according to Tolkunbek Abdygulov.
He believes that crypto investors will be more pleased to trade with NBKR licensed crypto exchanges, as they know that their funds are well insured against losses. The new rule has been met with several applauses by many crypto analysts in the country who believe that the country is taking the right step in the right direction towards the adoption of cryptocurrency.
Kyrgyzstan is taking the right step in the right direction
The news of Kyrgyzstan joining a list of countries like the United Kingdom, Japan, and Thailand to regulate cryptocurrency activities in the country has been touted by many as a step other countries should emulate. Many detractors of cryptocurrencies like Bitcoin, Ethereum, and Co., have always cited issues like the non-regulation and non-insurance nature of the assets as a strong point to win their arguments.
Kyrgyzstan taking a step forward by assuring crypto investors that their digital assets will be well insured further shows that the Central Asian Nation is fully aware of its citizens’ needs. African countries like Nigeria, whose Central bank has started to halt the activities of crypto trading in the country, is currently following Asian country India by going backward towards the development of cryptocurrency in their nation. However, it is now necessary for many countries to follow Kyrgyzstan’s step to achieve a stable and sane cryptocurrency development and space in their nation.