Kyrgyzstan moves to ban binary options as gambling

The draft law would prohibit advertising and recruitment for binary options schemes, while introducing criminal liability for unauthorised lotteries.

Kyrgyzstan.— The Kyrgyz Republic is advancing legislation to prohibit binary options platforms and increase criminal penalties for illegal gambling and unauthorised lotteries. Approved in its second reading on October 27 by the Zhogorku Kenesh Committee on Finance, Budget, Entrepreneurship and Competition Development, the draft law amends the Criminal Code as well as laws governing gambling and lotteries.

The bill bans the organisation, advertising, and recruitment for binary options schemes, while prohibiting the acceptance of fiat or virtual assets from residents. It also introduces specific criminal liability for operating unauthorised lotteries, including online formats, to curb financial fraud and prevent money laundering.

Speaking on Birinchi Radio, Kairat Mamatov, chairman of the State Service for Regulation and Supervision of the Financial Market, confirmed that financial schemes where citizens bet on asset price fluctuations will now be regulated as gambling. “This is not a casino in the conventional sense, but we classify such activities as gambling,” Mamatov said.