The agency emphasizes that in recent years there has been a growing number of cases of illegal lottery and binary options operations conducted via the internet. These activities are often disguised as promotional campaigns or charitable events and are carried out through social networks, messengers, and various websites.
Organizers of such events attract citizens by promising them expensive cars, large cash prizes, or other valuable gifts. In practice, however, these actions violate the laws of the Kyrgyz Republic.The problem of illegal lottery activities and binary options online poses a serious threat to the economy, the social sphere, as well as to national security and the fight against money laundering. Given the situation, the Ministry of Economy believes it is necessary to take additional measures to strengthen state control and increase financial literacy among citizens.
In this regard, it is proposed to amend the Criminal Code to stipulate that the organization or conduct of lotteries without the appropriate license from the authorized body, especially if repeated after an administrative penalty, will be punishable by a fine: for individuals — 500 calculation indicators (50,000 soms), for legal entities — 1,000 calculation indicators (100,000 soms).
If such a violation is committed by an organized group or using official position, as well as involving minors, the punishment may include imprisonment for a term of 3 to 5 years.
Note. This article does not concern promotional lotteries.
For violations of lottery legislation by organizers of promotional lotteries, liability is provided according to the Code of Offenses.
Furthermore, the law "On Gambling Activities in the Kyrgyz Republic" will be supplemented by Article 151:
1. The following are prohibited in the Kyrgyz Republic:
- the organization and conduct of gambling games in the format of binary options;
- advertising and promotion of binary options;
- accepting monetary funds and virtual assets from citizens and residents of the Kyrgyz Republic for participation in binary options;
- any intermediary activities aimed at involving citizens in binary options.
3. Banks, payment organizations, and virtual asset providers must block all operations related to binary options, including transfers and storage of funds, based on the list provided by the authorized body, as well as take measures to prevent such operations.
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