Parliament Approves Comprehensive Crypto Bill
Kyrgyzstan’s parliament has passed a wide-ranging cryptocurrency law, establishing new rules for digital assets, crypto mining, and licensing requirements. The legislation, approved in three readings at once, introduces legal definitions for stablecoins and real-world asset tokens (RWA tokens) while granting the state authority to create its own cryptocurrency reserve.
Local reports confirm the new framework will significantly expand the president’s powers to regulate issuance and circulation of digital assets. It also provides for regulatory sandboxes, allowing controlled testing of innovative blockchain services.
State Crypto Reserve and Mining Plans
Under the new law, the Kyrgyz government will have the ability to launch a national crypto reserve, aimed at strengthening the country’s financial stability. The state will also be able to engage in crypto mining operations using national infrastructure and resources.
The legislation requires miner registration and sets standards for mining equipment, a move designed to bring oversight to an industry often criticized for its high energy consumption.
Committee discussions in Bishkek revealed concerns about the power demands of Bitcoin mining.
Expanding Oversight and Licensing
The law designates two regulatory authorities: one to license crypto service providers, and another to enforce compliance measures such as anti-money laundering (AML) and counter-terrorist financing (CTF).
Minister of Economy and Trade Bakyt Sydykov revealed the scale of Kyrgyzstan’s crypto sector during a budget committee meeting. He noted that the turnover of exchanges reached 1 trillion soms in the first seven months of the year, generating 1 billion soms in tax revenue.
Sydykov added that the sector is growing every year, with 169 registered operators, including 13 crypto exchanges and 11 industrial mining companies. From January 2026, exchanges operating in Kyrgyzstan will be required to show at least 1 billion soms ($115,000) in proven capital, reinforcing investor confidence in the industry.
Digital Som CBDC in Development
Alongside the new crypto law, Kyrgyzstan is advancing its central bank digital currency (CBDC) project. President Sadyr Japarov signed legislation in April granting legal status to the digital som.
Testing of the digital som is expected to begin this year, with a final decision on its issuance scheduled for 2026. The CBDC initiative is designed to complement the broader digital asset framework, placing Kyrgyzstan among the few nations simultaneously regulating crypto and piloting a state-backed digital currency.
Kyrgyzstan’s Path to Digital Finance
By combining crypto regulation, a potential state mining sector, a national reserve, and a CBDC project, Kyrgyzstan is taking a comprehensive approach to digital finance. While energy consumption concerns remain, the government’s commitment to building a regulated ecosystem suggests that Bishkek is determined to capitalize on crypto’s growth rather than resist it.
