RESOLUTION OF BOARD OF NATIONAL BANK OF THE KYRGYZ REPUBLIC

of February 3, 2023 No. 2023-P-14/8-2-(NPA)

About approval of the Procedure for provision of services, connected with virtual assets

According to Articles 5, "About National Bank of the Kyrgyz Republic" the Board of National Bank of the Kyrgyz Republic decides 9 and 64 constitutional Laws of the Kyrgyz Republic:

1. Approve the Procedure for provision of services, connected with virtual assets it (is applied).

2. This resolution becomes effective after 15 (fifteen) days from the date of official publication.

3. To legal management:

- from the date of receipt of the relevant documents within 3 (three) working days to publish this resolution on the official website of National Bank of the Kyrgyz Republic;

- after official publication to send this resolution to the Ministry of Justice of the Kyrgyz Republic for entering into the State register of regulatory legal acts of the Kyrgyz Republic.

4. To management of payment systems after official publication within 3 (three) working days to bring this resolution to the attention of OYuL "Union of Banks of Kyrgyzstan" and commercial banks.

5. To impose control of execution of this resolution on the board member of the National Bank of the Kyrgyz Republic supervising management of payment systems.

Appendix

to the Resolution of Board of National Bank of the Kyrgyz Republic of February 3, 2023 No. 2023-P-14/8-2-(NPA)

Procedure for provision of services, connected with virtual assets

1. General provisions

1. Activities for provision of services, connected with virtual assets, are the licensed type of activity and are performed based on the license granted by authorized state body in the sphere of virtual assets (further - authorized body) according to the legislation of the Kyrgyz Republic in the sphere of virtual assets.

2. Service provider of virtual assets (further - PUVA) is the legal entity registered in the territory of the Kyrgyz Republic and providing as business activity of one or several types of service connected with virtual assets based on the license granted by authorized body according to the legislation of the Kyrgyz Republic in the sphere of virtual assets.

3. The National Bank of the Kyrgyz Republic (further - National Bank) exercises regulation and supervision of activities of the legal entities, persons under surveillance to National Bank providing the services connected with virtual assets as PUVA according to the requirements established by regulatory legal acts of National Bank.

4. Regulation and supervision of activities of other legal entities providing the services connected with virtual assets as PUVA performs authorized body according to the legislation of the Kyrgyz Republic in the sphere of virtual assets and regulatory legal acts of authorized body.

5. This Procedure for provision of services, connected with virtual assets (further - the Procedure), establishes the minimum requirements to commercial banks (banks) when rendering the services connected with virtual assets according to the constitutional Law of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic", the Law of the Kyrgyz Republic "About banks and banking activity", the legislation of the Kyrgyz Republic in the sphere of virtual assets and other regulatory legal acts of the Kyrgyz Republic by them.

6. Action of this Procedure extends to the banks providing the services connected with virtual assets as PUVA.

7. The bank has the right to provide the services connected with virtual assets as PUVA in the presence of the consent of National Bank and receipt of the corresponding license of authorized body.

8. The bank has the right to render only the following list of the services connected with virtual assets according to the established requirements of this Procedure:

1) translation of virtual assets;

2) storage, management and control of virtual assets;

3) rendering the financial services connected with primary accommodation and (or) sale of virtual assets of the issuer.

The bank is forbidden to render the services connected with virtual assets not stipulated by the legislation the Kyrgyz Republic and this Procedure, including:

1) purchase and sale (exchange) of virtual assets;

2) exchange between virtual assets.

9. In case of violation of requirements of this Procedure by bank the National Bank has the right to apply corrective actions according to regulatory legal acts of the Kyrgyz Republic and to initiate the procedure of suspension/revocation of license of bank in authorized body.

2. Terms and determinations

10. The terms and determinations used in this Procedure are understood in that value in what they are used in the legislation of the Kyrgyz Republic in the sphere of virtual assets.

3. Procedure for receipt of consent of National Bank for the appeal to authorized body in the sphere of virtual acts for receipt of license for activities of the service provider of virtual assets

11. The bank for implementation of activities as PUVA shall receive the consent of National Bank.

After receipt of consent of Natsionalnogo banka bank files petition for licensing for implementation of activities as PUVA in authorized body according to requirements of the legislation of the Kyrgyz Republic in the sphere of virtual assets and regulatory legal acts of authorized body.

12. For receipt of consent of National Bank to implementation of activities as PUVA bank shall provide document package in the National Bank including:

- the statement for consideration of question of provision of consent to implementation of activities as PUVA signed by the chairman of the board of bank and under seal bank;

- detailed minutes abstract of meeting of the Board of Directors which contains the solution of the board of directors resolving implementation of activities as PUVA and also information that the board of directors carries out the comprehensive analysis of expected transactions and their influence on activities of bank and that the bank identifies the risks integrated to new transactions based on the conclusion of service risk management - the copy certified by seal of bank;

- the approved business plan of bank on implementation of activities as PUVA containing economic case of need of implementation of such activities, marketing plan on implementations of actions, forecast economic calculations, strategy for risk management;

- the organizational structure of bank reviewed in connection with the planned expansion of activities of bank (if necessary);

- the forecast of profitability connected with expected transactions;

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