Kyrgyzstan’s State Service for Regulation and Supervision of Financial Markets has developed a draft regulation on cryptocurrency exchanges in a move to bring them legal status.

The new framework is expected to grow investor awareness on crypto exchange operations as well as generate new income sources for the national budget.

The document establishes the status, functions, rights, and obligations of trading platforms, as well as the requirement for their mandatory registration in the Unified State Register.

The project also provides for the responsibility of exchanges in terms of countering the financing of terrorist activities and money laundering.

According to the State Service for Regulation and Supervision of Financial Markets, the developed rules will reduce the risks for cryptocurrency holders and will attract qualified investors and businesses to the market.

Kyrgyzstan has sought to regulate the crypto industry multiple times in recent years, initiating regulations that targeted the crypto mining industry as well as cryptocurrency exchanges. In February, Kyrgyzstan’s central bank was planning to introduce a licensing regime for crypto exchanges in a move to protect local investors.