New legislation sets legal foundation for crypto reserve, mining rules, and stablecoin issuance.
Kyrgyzstan crypto regulation enters new phase
Kyrgyzstan has moved closer to building a national digital economy as lawmakers passed amendments to the “On Virtual Assets” bill in three readings. The legislation introduces the concept of a state crypto reserve, creating a framework for state-managed mining, tokenized assets, and stablecoin circulation.
Economy and Commerce Minister Bakyt Sydykov presented the draft, stressing that the reform will provide Kyrgyzstan with a new financial tool to strengthen its economy.
State crypto reserve as a financial stability tool
According to the government, the crypto reserve will allow the state to accumulate digital assets through mining, tokenization of real-world assets, and issuance of stablecoins backed by fiat currency.
“A crypto reserve would allow the state to accumulate its own assets in cryptographic form through crypto mining, tokenization of real-world assets, and issuance of stablecoins backed by fiat currency,” Sydykov stated during a committee meeting.
Officials believe this will diversify national reserves and provide a safeguard against financial volatility. Sydykov emphasized that the initiative aims to integrate blockchain-based accumulation instruments without compromising Kyrgyzstan’s energy sector.
No exceptions on mining tariffs
Concerns have been raised regarding the country’s electricity use, as Kyrgyzstan has become a hotspot for crypto mining in Central Asia. To address this, the minister clarified that the government will pay the same mining tariffs as private operators.
“There is a separate tariff for mining in the country, and the state is no exception. There will be no farm at the thermal power plant, the main purpose of the thermal power plant and Kambar-Ata-1 is not mining,” Sydykov explained.
By formalizing a state crypto reserve, Kyrgyzstan positions itself as a regional pioneer in digital asset legislation. The framework is expected to encourage foreign investment, technological innovation, and greater integration into the global blockchain economy.
With this bill, Kyrgyzstan signals its ambition to use digital assets as a strategic economic pillar, joining the growing list of nations seeking to balance regulation with innovation.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.