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Kyrgyzstan Moves to Ban Binary Options and Related Payments

Kyrgyzstan Moves to Ban Binary Options and Related Payments
Kyrgyzstan is moving toward a ban on binary options that would cover not only the platforms themselves but also advertising, payments and services used to bring customers to them. A parliamentary committee backed the bill in its first reading on September 15.

The draft was approved by the Committee on Finance, Budget, Entrepreneurship and Competition Development, the Financial Market Regulation and Supervision Service said. It deals with two areas separately: online lotteries and binary options. The latter would be prohibited.

Money and Crypto Transfers Are Included

The ban would cover organizing and promoting binary options, mediation and payments. Banks, payment companies and virtual asset service providers could be required to stop related transfers, exchanges and storage of money or virtual assets.

Internet and telecom providers would have 24 hours to block relevant resources after receiving the required notice and court decision.

The measures would be written into Kyrgyzstan's gambling framework through amendments to the Criminal Code, the Gambling Act and the Lotteries Act. Enforcement would therefore extend beyond operators to payment and telecom infrastructure.

Kyrgyzstan Has Seven Land-Based Casinos

The same committee meeting also produced an updated figure for Kyrgyzstan's land-based gambling market. Financial Supervision Service chairman Kairat Mamatov said the country currently has seven casinos, with six operating in Bishkek and one in Osh. Kyrgyz citizens are not admitted to them, Akchabar reported.

Mamatov said operators risk losing licences that cost $1 million if they allow Kyrgyz citizens onto casino premises.

Digital Lotteries Face Separate Penalties

Online lotteries are being handled through another part of the bill. Organizing a lottery without authorization, including through digital networks, could lead to criminal liability.

Earlier published provisions set fines of KGS50,000 for individuals and KGS100,000 for companies following a prior administrative offence. Using the National Bank's September 15 exchange rate of KGS87.45 per US dollar, that is about $572 and $1,144.

More serious cases could carry prison terms of three to five years, including cases involving organized groups, abuse of an official position or minors.

The September 15 committee decision was a first-reading step. The next points to watch are whether the bill advances without changes to the payment and 24-hour blocking provisions, and what effective date lawmakers eventually set.