Bitcoin payments are illegal under Kyrgyzstans regulation

Tuesday 5 August 2014 13:22 CET | News

The National Bank of the Kyrgyz Republic has issued new statements which claim that Bitcoin and other digital currency payments are not legal, according to the central Asian state’s law, reports.

The official statements, which were issued in July 2014, state that the only legal tender in Kyrgyzstan is KGS, the national currency. At press time, 1 KGS was worth USD 0.019.

The central bank has also warned consumers about the potential risks inherent in digital currencies which do not fall under the law’s responsibility.

Moreover, the official document argues upon the inability of consumers to cancel transactions made in Bitcoin once payment is transmitted, making the users susceptible to theft and scams. Additionally, Bitcoin’s price is highly volatile because it is not on par with any other fiat currency, the same document highlights.

Digital currency users may fall under legal liability since, as the document claims, it is not regulated and, as such, criminal charges may incur.

Data shows that the official Bitcoin-Qt wallet has only been downloaded around 1,000 times in the central Asian nation with a population just shy of 6 million, suggesting local digital currency use is not widespread.

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Keywords: Kyrgyzstan, Bitcoin, digital currency, crypto-currency, online payments, illegal, ban, virtual currency, regulation
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce