The National Bank of the Kyrgyz Republic presented new rules for financial marketplaces

The National Bank of Kyrgyzstan (NB KR) has initiated a project for new rules concerning the operation of financial marketplaces. The main goal of the document is to organize the activities of digital platforms, implement unified technological standards for APIs, and enhance the protection of users' personal data.

These new regulations will replace the previous provisions from 2022 and create more transparent conditions for the registration and functioning of operators through a "single window" system. The press service of the financial regulator shared this information.

A draft resolution of the NB KR Board, titled "On the Approval of the Rules for the Creation and Operation of Financial Platforms (Marketplaces) in the Kyrgyz Republic," has been presented for public discussion.

This document is designed to establish clear rules necessary for the launch and development of financial services on the marketplaces of the Kyrgyz Republic. Its main areas of focus include:

creating a sustainable, transparent, and secure regulatory framework for financial platforms;

supporting a competitive environment in the financial sector;

protecting the rights and interests of consumers of financial services.

As stated in the project brief, this innovation has become necessary against the backdrop of the rapid development of digital financial technologies and growing demands for anti-fraud systems, the transition to digital documentation, and ensuring the security of personal data. Currently, there are also no clear norms regulating the timelines and refusals for the registration of financial platform operators.

The Board of the NB KR has decided to:

approve new Rules for the Creation and Regulation of Financial Platforms in Kyrgyzstan;

annul the previous resolution from June 2, 2022, regarding access to financial services through open application programming interfaces.

In this regard, according to part 1 of article 17 of the KR law "On Normative Legal Acts in the Kyrgyz Republic," the old provisions will be updated and renamed to "Rules for the Creation and Regulation of Financial Platforms (Marketplaces) in the Kyrgyz Republic."

The document includes:

requirements for financial platform operators;

the procedure and timelines for reviewing documents submitted to the NB KR;

grounds for the registration or refusal of registration of financial platform operators.

The changes will ensure greater transparency in the operations of financial platforms and help better assess their activities.

Additionally, the document proposes the implementation of disclosure requirements for financial platform operators. This, in turn, should increase the level of awareness among consumers and market participants, as well as strengthen trust in platforms as intermediaries in the financial sector.

Special attention is given to the introduction of requirements for API standards for interaction with financial service providers. In the existing regulation, these requirements are not clearly defined, making integration with financial organizations difficult and reducing system compatibility. The introduction of unified API standards will contribute to improved service quality and the development of competition.

Another important aspect is the protection of information and personal data of clients. In the context of growing cyber threats, the requirements for financial platform operators regarding the assurance of confidentiality and data integrity have been strengthened. These measures should enhance user trust in digital financial services and minimize cybersecurity risks.

The draft resolution specifies:

requirements for documents for the registration of financial platform operators in the NB registry;

types of informational and financial services that can be provided on the marketplace;

requirements for the placement of information about financial services on the platform;

requirements for information protection on the platform.

Financial platform operators may provide the following informational services:

placement of data on financial services, including exchange rates and tariffs;

services for buying and selling gold bars;

information about other assets available for sale in accordance with the legislation of the KR.

Financial transactions must be conducted exclusively by service providers, and the platform operator is not allowed to conduct transactions in its own name.

The issues addressed in the draft cover the activities of financial platform operators, commercial banks, microcredit and microfinance organizations, as well as payment systems.

An analysis of international practices in regulating financial platforms has shown that there is no single global standard; however, common trends are observed that help countries adapt to digitalization.

The adoption of this document will not lead to negative consequences in social, economic, legal, or environmental spheres.

More detailed information about the draft resolution can be found at the link.

Source: banks.kg