The agency notes that in recent years there has been an increase in cases of illegal lottery operations and binary options conducted over the internet. These activities are often carried out through social networks, messaging apps, and websites that disguise themselves as promotional campaigns or charitable events.
Organizers of such events advertise enticing prizes, including expensive cars and large sums of money; however, in reality, these actions do not comply with the legislation of the Kyrgyz Republic.The problem of illegal lottery activities and binary options online poses a serious threat, affecting not only the economy and social sphere but also issues of national security and the fight against money laundering. The current situation requires urgent measures to strengthen state control and enhance the financial literacy of the population, the Ministry of Economy emphasizes.
In light of the above, it is proposed to supplement the Criminal Code with a new provision that will provide for punishment for organizing or conducting lotteries without the appropriate permits. In particular, this will apply to cases where a similar offense has already occurred. Fines may amount to up to 500 calculation indicators (50,000 soms) for individuals and up to 1,000 calculation indicators (100,000 soms) for legal entities.
If such an act is committed by an organized group or using official position, or involving minors, it will be punishable by imprisonment for a term of 3 to 5 years.
Note. This provision does not apply to promotional lotteries.
Organizers of promotional lotteries who violate the legislation will also be held accountable in accordance with the Code of Offenses.
Additionally, the law "On Gambling Activities in the Kyrgyz Republic" will contain a new Article 151, which states:
1. The following are prohibited on the territory of the Kyrgyz Republic:
- organization and conduct of gambling in the form 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;
- brokerage services related to attracting citizens to binary options.
3. Financial institutions and companies providing virtual asset services are required to block all transactions related to binary options based on a list provided by the authorized body and take measures to prevent such operations.
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