The development of the virtual asset market in Kyrgyzstan is progressing rapidly, and the country is already among the top 20 states in the world in promoting cryptocurrencies and blockchain technologies.
Can we assert that the crypto market has reached the stage of institutional development? In the global context – yes. Institutional funds actively operate in this sphere, investing in cryptocurrencies. For example, BlackRock continuously invests in Bitcoin and mining.
One of the key factors for success is our favorable legislation. In 2022, a law on virtual assets was adopted, which became a stimulus for many cryptocurrency companies from the CIS to open in Kyrgyzstan. Our laws promote the development of the crypto industry, while in other countries this issue remains unresolved.
When I visited Moscow last year, the discussion about the crypto market in Kyrgyzstan lasted an entire hour. Participants noted that our country ranks first in the region in cryptocurrency development due to its legislation, and we lead among the CIS and Central Asian countries.
Issuers of virtual assets are just beginning their activities. The issuance process in Kyrgyzstan is quite simple; however, low activity is related to the fact that in most CIS countries this market is at an initial stage: in some places, it is prohibited, while in others, the legislation is still unclear.
Moreover, the lack of knowledge among the population that virtual assets are a reality, not a future prospect, hinders development. There is significant earning potential in this sphere, but there are not enough qualified specialists in the country, which also complicates the opening of new issuers.
During the winter period, mining is temporarily suspended due to a lack of electricity for the population.
After the winter season, mining farms will resume their operations. Currently, state mining farms are being built, and the legislation provides for the creation of a state reserve by acquiring Bitcoin and BNB coins, which will be used for Bitcoin mining on behalf of the state.
The exchange of cryptocurrency and trading education is developing most actively. Many people are starting to trade cryptocurrencies, although it is quite a risky business. I believe that trading resembles a casino: only 5% of participants achieve success.
Personal experience shows that one can both earn and lose money. It is important to understand the mechanisms of the market and accumulate experience, as newcomers often lose funds on their first attempt.
The popularity of P2P exchanges is also growing, where many earn on the difference in rates. New companies and exchange points are opening, while mining structures form the main tax base, contributing significant amounts to the budget.
Although individuals also participate, their number is smaller. Mostly, these are traders and P2P operators who earn a living with small amounts. They usually do not earn millions, but it is enough for everyday expenses.
However, the level of understanding of virtual assets and cryptocurrencies among the population remains low. Programs for popularization and education are needed, starting from educational institutions to government officials. Currently, large-scale initiatives are absent, so the dissemination of knowledge occurs through "word of mouth." Often, inexperienced individuals fall into dubious companies and lose money. There are few specialists in this field, mainly engaged in P2P and trading.
The best protection is financial literacy. One should not engage with fraudsters posing as bank or government officials. The president never calls for investments in any projects. It is important to be vigilant and not to succumb to promises of easy earnings.
Source: caravan-info.kg
