The dynamics of virtual asset development in Kyrgyzstan is impressive. The country has entered the list of the top 20 countries in the world for promoting cryptocurrencies and blockchain technologies.
Institutional maturity in the cryptocurrency market is already being observed on a global scale. Investment funds are actively entering the crypto sector, including the largest investment company BlackRock, which regularly invests in cryptocurrencies, including Bitcoin and mining.
Kyrgyzstan attracts attention due to its progressive legislation. The law on virtual assets adopted in 2022 opened doors for many cryptocurrency companies from CIS countries that began their operations in Kyrgyzstan. Our legal framework fosters the development of the crypto industry, unlike several other countries where these issues remain under discussion.
During my visit to Moscow last year, I noticed that the Kyrgyz market occupied a significant place in discussions. Participants noted that the republic holds leading positions in the region in cryptocurrency development, which confirms our first place among CIS and Central Asian countries.
Issuers of virtual assets are just beginning to explore the local market. The process of launching an issuance in Kyrgyzstan is quite simple; however, activity remains low, which is related to the overall weak development of this sector in the CIS: in some countries, the market is completely banned, while in others, the legislation remains unclear.
Moreover, many still do not understand that cryptocurrencies are not the future but a reality in which one can earn. Unfortunately, the number of specialists in this field is limited, which affects the number of issuers being established.
During the winter period, mining is temporarily suspended due to a lack of electricity for the population, but with the end of the season, the farms will resume operations. Currently, state mining farms are already being built, which will mine bitcoins for the state, according to the legislation that provides for the creation of a state reserve through the purchase of bitcoins and BNB coins.
Cryptocurrency exchange is the most developed area, and training in trading is also actively conducted. Many people are engaged in cryptocurrency trading; however, it is a high-risk activity. Personally, I believe that trading resembles a casino, with only about 5% of participants becoming successful.
I myself have experience in trading and know that one can earn good money, but there is also a high risk of losses. Understanding how the market works and accumulating experience are key factors, as most people lose their funds in the early stages.
There is also a rise in P2P exchanges, where many earn on the margin. New companies, official exchanges, and mining structures are being established, which become the foundation of the tax base by paying taxes into the state budget.
Although individuals also participate in this process, their share is insignificant. These are mainly traders and P2P operators earning small amounts for living, which are generally insufficient for large incomes but quite suitable for everyday needs.
Nevertheless, society still does not fully understand what virtual assets and cryptocurrencies are. Programs for popularization and education are needed, starting from schools and universities, as well as among civil servants. Currently, large-scale initiatives are absent, and the dissemination of information mainly occurs through "word of mouth." Often, newcomers fall into the hands of scammers and lose their funds. There are not many specialists in the field of P2P and trading.
The most reliable protection is financial literacy. People should not trust scammers who pose as bank or government employees. The president has never called for investment in any projects. It is important to be cautious and not succumb to promises of easy earnings.
Source: caravan-info.kg
