Cyanide-containing solution is subjected to two-stage membrane electrolysis in units each comprising a cathode, an anode and one or more bipolar electrodes interspaced with cationic membranes defining alternating anode and cathode compartments containing anolyte and catholyte, respectively. Electrolysis causes generation of hydrogen cyanide in the recirculating first stage anolyte, and alkali metal hydroxide is formed in the recirculating first-stage catholyte. The hydrogen cyanide is stripped from the first stage anolyte and is subsequently absorbed in catholyte in an absorption unit for the recovery of alkali metal cyanide-containing solution. Partially cyanide-depleted first-stage anolyte is mixed with an amount of an alkali metal chloride and passed as second-stage anolyte through the second-stage unit for the generation of chlorine with destruction of residual cyanide in the anolyte and the formation of alkali metal hydroxide in the recirculating second-stage catholyte from which a portion is directed to the absorption. A substantially cyanide-free effluent is withdrawn from the circulating second-stage anolyte. To allow for the formation of solid precipitates in the anolyte of the membrane electrolysis stages, the width of the anode compartments may be increased to at least 5 mm. Electrolysis is carried out at current densities in the range of 20 A/m.sup. 2 to 350 A/m.sup.2 and at ambient temperatures.