[2018-04-14]Kyrgyzstan Sticks to Politics that Favor Blockchain, Cryptocurrencie

[Vladdirescu87]

Kyrgyzstan Sticks to Politics that Favor Blockchain, Cryptocurrencies and Bitcoin Mining

Among a lot of news from all around the world about crypto market regulation and banning policies, the legal system of the Kyrgyz Republic indeed shows a friendly attitude to the rapidly-developing financial technology. As a recent report states, Kyrgyzstan is set to create favorable conditions for cryptocurrency trading and bitcoin mining.

Read the details in the article of Coinidol dot com, the world blockchain news outlet: https://coinidol.com/kyrgyzstan-sticks-to-politics-that-favor-blockchain/

[Rustamm]

I did not understand something. Kyrgyzstan has always been on the list of countries that have completely banned the use of crypto currency in their territory. Here it is also indicated that this is a friendly country to the crypto currency. Is this a change in position relative to the crypto currency, or is it some kind of mistake? If this country really changed its attitude to the crypto currency, then it's very good. There will already be fewer countries that are hostile to the introduction of crypto currency.

[CryptoBry]

I did not understand something. Kyrgyzstan has always been on the list of countries that have completely banned the use of crypto currency in their territory. Here it is also indicated that this is a friendly country to the crypto currency. Is this a change in position relative to the crypto currency, or is it some kind of mistake? If this country really changed its attitude to the crypto currency, then it's very good. There will already be fewer countries that are hostile to the introduction of crypto currency.

Maybe there had been noisy people from the government who are against this new industry but then the government decided to be a part of the cryptocurrency bandwagon seeing the benefits this whole thing can bring to an open-minded country like them. Small countries with small economy can really get more advantages if they accept cryptocurrency into their market. We should be hoping that more and more can see this picture and not anymore be swayed by FUDs that can sprout anytime.

[Valery Tutykhin]

Hello, my name is Valery Tutykhin. I am the Director of International Finance Center Development Agency in the Kyrgyz Republic, and it was us who commissioned the report discussed in the original post here.

Answering your question: there is no hostility towards cryptocurrencies in Kyrgyzstan. In 2014 the Chairman of the National Bank of the Kyrgyz Republic sent out a circular stating that bitcoin is not a valid currency for domestic settlements (which is absolutely true, but is irrelevant for the development of any crypto businesses, this is just a legal matter for domestic commerce - that you should not quote prices in a foreign currency... like dollars or euro or any other currency). That was widely and erroneously interpreted as a negative stance of Kyrgyzstan towards crypto business.

This erroneous interpretation has been rectified early this year when the international legal team engaged by our Agency and the country's stock exchange produced a report on how the law of the Kyrgyz Republic treats cryptocurrencies, ICOs, mining etc etc. It was presented to the Government and all the relevant departments.

In a nutshell, the conclusion of the legal experts was that you can engage in any crypto commerce in Kyrgyzstan, and the local law will support it. Moreover, the peculiarity of Kyrgyzstan's legislation is that you can use its jurisdiction to do a number of unique things:

- run an ICO in the form of a local IPO (with full regulation by the local SEC); that will eliminate the controversy of whether the tokens are investment or utility tokens. There is local investment infrastructure (ask me for references, if you need) enabling the tokenization of any shares issued as regular shares. You get a listing at the local stock exchange plus the ability to have your tokens traded globally;

- use the local commodity exchange or set up your own to have a fully compliant, regulated crypto exchange (cryptos are "commodities" under Kyrgyz law).

Etc. etc.

Will be happy to answer any specific questions and direct you to local providers if you consider using Kyrgyzstan as your legal base for the crypto project.


Valery Tutykhin

cell +41 79 775 75 75 (+WhatsApp etc)

[MoonJeina]

I have heard alternate comments from that country . To be honest I haven't heard a lot and I haven't gone into its depth for sure .
In a country there are three views about blockchain and crypto currencies . 1) People are in favor of it
2) People dislikes it and hate it for the reason that it might effect their fiat  3) People who don't have an idea about it and would go in any of the direction if insisted . The people in the first category also involves people who are part of government and that percentage is the only one talking positive about it . Other than that , blockchain is misunderstood everywhere.

[Valery Tutykhin]

On your points:

The leadership of Kyrgyzstan, on a personal level, is generally not so tech-savvy to understand blockchain in-depth. However, they have a history of promoting legislation to support technical innovation. They launched a "High Technologies Park" tax regime granting complete exemption from taxes to any qualifying IT business which exports its product/services (so far, there are dozens of companies using the regime, and their biggest clients are in the Silicon Valley... offshore software development of sorts). They are now running an ambitious program, called Taza Koom (Clean, or Transparent Society) which basically is E-Government etc. etc.

There is no concern about cryptocurrencies affecting the Kyrgyz fiat currency, Som at all because the country does not have ANY exchange controls in the first place. Other currencies are welcome for trading, there are no barriers for capital movement etc. The National Bank only advises people to be very careful investing into crypto, as it is volatile and may not be a replacement for conservative family savings (which is only reasonable).

Best,

VT