Kyrgyz parliament committee advances binary options ban in second reading
Regulation1 min read
In brief
- A Kyrgyz parliamentary committee voted on 27 October to advance a draft law in its second reading.
- The bill would ban binary options schemes, their promotion and recruitment, and accepting residents' assets.
- It would also add criminal liability for unauthorised lotteries, including online, and raise illegal gambling penalties.
A committee of Kyrgyzstan's parliament voted on 27 October to advance a draft law in its second reading that would prohibit binary options schemes, according to a report. The Zhogorku Kenesh Committee on Finance, Budget, Entrepreneurship, and Competition Development approved the draft, which would also ban the promotion and recruitment of participants and increase criminal sanctions for illegal gambling and lottery operations. The measures are provisions of a draft law and are not in force.
The bill would amend the Criminal Code as well as gambling and lottery laws. It covers organising binary options schemes, advertising them and recruiting participants, and would prohibit accepting fiat or virtual assets from residents. It would also introduce criminal liability for operating unauthorised lotteries, including online formats, alongside the planned increase in penalties for illegal gambling. The stated objectives include curbing financial fraud and preventing money laundering.
During an appearance on Birinchi Radio, Kairat Mamatov, who chairs the State Service for Regulation and Supervision of the Financial Market, explained how the authorities view these arrangements. In his account, schemes in which people wager on movements in the value of their holdings fall under gambling regulation. He drew a line between such arrangements and an ordinary casino, yet left no doubt that the state treats them as a form of gambling.