Kyrgyzstan Allows Banks to Trade Cryptocurrencies Amid International Scrutiny

Kyrgyzstan is set to become one of the first countries in Central Asia to permit banks and financial institutions to conduct cryptocurrency transactions.

The proposed amendments to the country's virtual asset law aim to increase transparency in the market, attract foreign investment, and boost tax revenues.

The move comes as Kyrgyzstan faces new sanctions over its role in helping Russia bypass international restrictions. The government is hoping that by allowing banks to buy and sell digital coins on behalf of their clients, it can integrate cryptocurrencies into the traditional financial system.