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Kyrgyzstan has enacted legislation that will establish a framework for the regulation of the digital assets industry, which includes provisions for the creation of a crypto reserve and the organization of state-sponsored mining activities.
The Kyrgyz Parliament has approved the law titled “On Virtual Assets,” which will lay the groundwork for overseeing the cryptocurrency sector within the nation. Lawmakers endorsed the proposal in three readings simultaneously, underscoring the document’s strategic significance.
This legislation facilitates the creation of a state crypto reserve and the initiation of mining operations utilizing government resources and infrastructure. Furthermore, it introduces new legal definitions, such as fiat-pegged stablecoins and RWA tokens.
The law empowers the president of the country to establish regulations regarding the issuance, circulation, and oversight of virtual assets. A notable innovation is the introduction of “regulatory sandboxes,” which are specialized frameworks designed for testing innovative services and technologies in controlled environments.
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The legislation also delineates the responsibilities among governmental entities: one designated agency will be responsible for issuing licenses to virtual asset service providers, while another will oversee adherence to regulations, including measures against money laundering and counter-terrorism financing. However, the specific agencies tasked with these roles have yet to be identified.
For participants in the market, the law mandates the registration of mining equipment and establishes technical specifications for it, along with a licensing process for legal entities engaged with digital assets.
Max Krupyshev, CEO of CoinsPaid, previously remarked that cryptocurrency reserves could be viewed as a means to lessen dependence on traditional financial assets as part of a strategy for portfolio diversification. “Any state could implement this initiative if it sees strategic value in doing so,” Max stated.
In May 2025, Kyrgyzstan’s Ministry of Finance revealed intentions to launch a state dollar-pegged stablecoin, USDKG, in the third quarter of 2025, partially backed by the nation’s gold reserves.
Сообщение Kyrgyzstan Introduces State Regulation of Crypto Sector появились сначала на CoinsPaid Media.
