Kyrgyzstan moves to ban binary options as a form of gambling, with criminal liability for unlicensed lotteries

What the bill does

The draft law "On Amendments to Certain Legislative Acts of the Kyrgyz Republic in the Field of Gambling and Lottery Activities" amends the Criminal Code, the Law on Gambling Activities and the Law on Lotteries. According to the financial regulator, it would also bar accepting money or virtual assets from Kyrgyz citizens and residents for binary options.

"There are so-called binary options. People place bets on whether share prices will rise or fall or whether an exchange rate will change. This is not a casino in the conventional sense, but we classify such activities as gambling," Kairat Mamatov, chairman of the Service for Regulation and Supervision of the Financial Market, said on Birinchi Radio on October 30, as reported by 24.kg.

How the bill reached committee

Parliament passed the bill in first reading on October 7. Presenting it, Deputy Minister of Economy and Commerce Benazir Nurlanova said it sets rules for online lotteries, digital prize draws and binary options and aims to cut fraud and money laundering risks. During the debate, deputy Ulan Sariev said online casinos often operate under the guise of binary options and proposed measures targeting the banks that process the transactions. Speaker Marlen Mamataliev backed blocking through the banking system, the press service said.

The bill now returns to the full chamber for its second reading.

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