The development of the virtual asset sector in Kyrgyzstan is progressing at a rapid pace. The country has entered the list of the twenty most progressive states in the world in terms of the adoption of cryptocurrencies and blockchain technologies.
Can we assert that the market is at the stage of institutional development? On the international stage – yes, many institutional funds are actively investing in cryptocurrencies. For example, BlackRock continuously invests in Bitcoin and mining.
The legislation in the Kyrgyz Republic is very flexible. The law on virtual assets adopted in 2022 has made the country attractive for cryptocurrency companies from the CIS. Our laws promote the development of the crypto market, while in other countries this issue is still under discussion.
At one of the events in Moscow last year, the situation in the Kyrgyz market was discussed for a whole hour. Participants noted that thanks to the legislation, Kyrgyzstan occupies a leading position in the region in the development of cryptocurrencies, surpassing other CIS and Central Asian countries.
Issuers of virtual assets are just beginning to explore the market. The procedure for launching an issuance in Kyrgyzstan is quite simple. The low interest in this area can be explained by the overall weak development of the crypto market in the CIS: in some countries, it is banned, while in others, the legislation remains unclear.
Moreover, the broad audience is still not aware that cryptocurrencies are not the future, but already a reality. There is an opportunity to earn in this sector, but there is a lack of qualified specialists in the country, which hinders the growth of the number of issuers.
Currently, mining has been suspended during the winter period due to a lack of electricity. However, with the end of winter, the farms will resume their operations. State mining farms are already under construction. The legislation provides for a reserve for the purchase of bitcoins and BNB coins, and these farms will be engaged in mining Bitcoin for the state.
Cryptocurrency exchange is the most developed sector, and training programs on trading are also actively conducted. Many aspire to enter this business and engage in cryptocurrency trading, but this is associated with high risks. Trading can be compared to gambling: only about 5% of traders achieve success.
I have personally experienced trading and know that both significant gains and losses are possible. It is important to understand the market and accumulate experience, as beginners often lose money on their first attempt.
P2P exchange is also actively developing, and many earn on the margin. New companies, official exchanges, and mining structures are emerging, creating the main tax base and paying taxes to the state.
Private traders also exist, but their share is smaller. Mostly, these are P2P operators who earn small amounts for living. They usually do not make millions, but it is enough for everyday expenses.
However, many people still do not 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 programs are absent, and the dissemination of knowledge occurs through "word of mouth." Often, inexperienced individuals fall into the traps of dubious companies and lose money. There is a shortage of qualified specialists, mainly working in the areas of P2P and trading.
The best protection is financial literacy. It is necessary to be wary of fraudsters who pose as bank or government agency employees. The president does not urge investing in any projects. It is important to be cautious and not to fall for promises of easy income.
Source: caravan-info.kg
