Kyrgyzstan's first state-run cryptocurrency exchange violated reporting requirements and was sanctioned by the regulator

A government project aimed at developing the virtual asset market in Kyrgyzstan has come under regulatory scrutiny. The country’s first state-owned cryptocurrency exchange, Coin Nomad Exchange OJSC, has been sanctioned by the Financial Supervisory Authority for failing to submit mandatory reports on time.

The state-owned crypto exchange failed to meet the established deadlines for submitting reporting data. As a result, in February 2026, the company was sanctioned with a fine of 50,000 KGS. The situation raises questions, as it is precisely the state-owned exchange that should serve as a benchmark for transparency and compliance with legal requirements.

The Financial Supervisory Authority regularly reminds market participants that the activities of virtual asset operators are strictly regulated. In accordance with Part 2 of Article 12 of the Republic’s Law “On Virtual Assets,” market participants are required to comply with legal requirements and submit information and reports on conducted transactions in a timely manner.

According to the relevant Regulation, a virtual asset exchange operator must submit operational reports on a monthly basis, as well as a full set of financial statements prepared in accordance with International Financial Reporting Standards on a quarterly basis. This includes statements of financial position, financial performance, changes in equity, cash flows, and explanatory notes.

At the same time, the company fell behind on tax and mandatory payments, which resulted in the accrual of penalties and fines. Specifically, Coin Nomad Exchange paid 23,500 KGS to the State Tax Service Office for the Pervomaisky District in connection with this. In total, the company has already transferred 605,700 KGS to the budget this year.

As a reminder, the “Coin Nomad Exchange” cryptocurrency exchange was registered by the Ministry of Justice on December 30, 2024. The company was established as a public joint-stock company, with the Ministry of Finance of Kyrgyzstan serving as the sole shareholder. To form the project’s initial authorized capital, 100 million KGS were allocated from the national budget.