The Parliament of Kyrgyzstan unanimously approved the draft law “On Virtual Assets” in three readings. The adopted document provides for the introduction of comprehensive regulation of the cryptocurrency market, covering issues of issuance, circulation, mining, and licensing activities in the field of virtual assets.
This is reported by Business • Media
State Mining and Creation of Crypto Reserve
According to the new law, state mining of cryptocurrencies will be launched in Kyrgyzstan for the first time, utilizing the country’s infrastructure and resources. Additionally, the establishment of a national crypto reserve is planned, which will become one of the main tools of state policy in the field of digital assets.
New legal terms are introduced in the draft law, including: stablecoins backed by fiat currency and tokens tied to real assets (RWA). The powers of the president are also expanded, allowing them to set the rules for regulating digital assets.
Increased Control and New Requirements for Market Participants
The law defines the competencies of state bodies: one will be responsible for licensing service providers in the field of virtual assets, while another will monitor compliance with requirements, including issues related to anti-money laundering and counter-terrorism financing. Registration of miners is also provided for, along with requirements for mining equipment and licensing procedures for legal entities conducting operations with digital assets.
This step is expected to enhance the transparency of the virtual asset market in Kyrgyzstan and create a legal basis for the further development of innovative financial instruments. It is worth noting that in May 2025, the country’s authorities plan to launch the USDKG stablecoin backed by gold.