The turnover of virtual assets in Kyrgyzstan exceeded 587 billion KGS

Against the backdrop of global trends towards tighter regulation of digital assets, Kyrgyzstan is demonstrating steady growth in the virtual asset sector and strengthening measures to control its participants. At the end of 2024, the turnover of virtual asset service providers in the country amounted to 587.3 billion KGS, of which 96% accounted for exchange operators.

Thus, the state budget received 214.8 million KGS in taxes from the activities of crypto exchanges, exchange operators and miners, confirming the industry's contribution to the republic's economy.

Kyrgyzstan began to develop a regulatory framework for the virtual asset market back in 2022. Today, the country is purposefully building a transparent ecosystem of digital financial instruments focused on protecting the rights of participants, stability and legal certainty.

As of 1 July this year, 13 licences have been issued to crypto exchanges and 186 licences to crypto exchanges in the republic. In addition, 11 legal entities engaged in industrial mining are registered in the country.

Special attention is paid to market transparency and investor protection.

As part of its supervisory activities, Finnadzor drew up 56 violation reports in 2024, amounting to 770,000 KGS, and 32 reports in the first half of 2025, amounting to 794,000 KGS. The licences of 19 exchange operators were revoked and another six licences were suspended.

Currently, the legal framework is based on the laws ‘On Virtual Assets’ and ‘On Combating the Financing of Terrorism and the Legalisation of Criminal Proceeds,’ as well as the Tax Code and resolutions of the Cabinet of Ministers. A Unified Register of Virtual Asset Issues has been created as part of the regulatory framework.

However, despite its growth, the market faces challenges, including insufficient legal protection, money laundering risks, the use of confidential cryptocurrencies, and the lack of investment attractiveness of local assets.

In response to these challenges, the republic is strengthening its supervisory measures. Amendments to the legislation are being prepared aimed at:

• prohibiting the issuance of unsecured virtual assets;
• registering tokens secured by government securities, shares, gold or cash;
• introducing mandatory customer risk awareness testing, banning anonymous wallets and private coins;
• expanding the powers of the Financial Supervisory Service, including the possibility of test purchases of tokens using a special fund.

It is also proposed to introduce a unified state system of collective mining with mandatory reporting by participants.

Kyrgyzstan is seeking to harmonise its regulations with international standards, including FATF recommendations, and is following the approach of major economies such as the United States, which recently passed the GENIUS Act, establishing strict rules for the issuance of stablecoins.