Kyrgyzstan’s cryptocurrency sector reports multi-billion transactions involving assets., 2026/02/12 20:19:13

The volume of cryptocurrency transactions in Kyrgyzstan has surpassed $7.9 billion over the past nine months, with the total value of all digital asset operations reaching $20.5 billion by the end of the year, according to Temir Kazybaev, head of the national Association of Virtual Asset Market Participants.

The estimated tax revenues from the industry amount to $22.8 million. Kazybaev noted that the crypto sector has contributed more to the state budget than the largest shopping center in the country, “Dordoy” ($7.9 million annually), and all individual entrepreneurs operating under the patent system ($13.6 million). 

Approximately 200 cryptocurrency exchanges and 11 mining companies are registered in Kyrgyzstan. The republic has its own gold-backed stablecoin tied to the dollar, known as USDKG. Kazybaev claims that businesses have ceased to fear cryptocurrencies and now recognize their potential for the future.   

“The perception of the crypto industry has shifted. A few years ago, it was often regarded as a scheme or a financial pyramid. This view is changing. People and businesses now see it as an opportunity,” the association head assured.

Kyrgyzstan has enacted legislation that grants authorities the power to establish procedures for the issuance and circulation of digital assets. The new regulations cover tokens issued domestically and backed by government-controlled assets. In addition to USDKG, there is a token linked to the Kyrgyz som, KGST.  

A company has been registered in the republic that issues a ruble stablecoin, A7A5. This asset has facilitated the transfer of funds amounting to $100 billion. Two Kyrgyz banks may be included in the new package of anti-Russian sanctions from the European Union, as European officials accuse them of providing cryptocurrency services to Russian companies that are under restrictions.