BISHKEK, Kyrgyzstan, February 3. The Ministry of Economy and Commerce of Kyrgyzstan seeks to increase the authorized capital of cryptocurrency exchanges from 100 million ($1.1 million) to 10 billion soms ($114.3 million), Trend reports.
The corresponding proposal has been put up for public discussion by the ministry.
The aim of the proposed regulation is to improve the legal framework governing the activities of cryptocurrency exchange operators, enhance their financial stability and reliability, protect user interests, and create favorable conditions for the development of the virtual asset market in Kyrgyzstan, in line with international standards.
It is noted that raising the capital requirements for cryptocurrency exchanges is intended to ensure their financial stability, protect user interests, and promote a transparent and secure virtual asset market.
A substantial authorized capital strengthens the liquidity of exchanges, enabling them to meet their obligations to clients promptly and maintain stable operations even during market fluctuations. Additionally, having a large capital reserve provides a financial cushion to cover potential losses arising from cyberattacks, technical failures, or other financial risks.
It is also worth noting that on January 24, Kyrgyzstan officially launched its first state-run cryptocurrency exchange, Coin National Exchange. The sole shareholder of the company is the Ministry of Finance.