A bill on state mining and crypto reserves has been submitted to parliament

A bill ‘On Amendments to the Law of the Kyrgyz Republic ’On Virtual Assets" has been registered in the Jogorku Kenesh. The initiative was put forward by the Cabinet of Ministers. The document was submitted on 21 August.

The bill proposes to introduce the concept of ‘state mining’ into the legal field — the activity of mining cryptocurrency with the participation of the state. Such activities can be carried out in various forms, namely through state-owned companies, specially authorised bodies or new enterprises with state participation.

According to the authors, state mining will allow the use of energy, infrastructure and technological resources for the extraction of virtual assets. The goal is to form a state cryptocurrency reserve, as well as to support blockchain projects and develop the digital economy.

The bill also establishes the concept of a ‘state cryptocurrency reserve’ — a collection of virtual assets owned by the state and formed through mining, issuance, tokenisation or acquisition. The management of the reserve, as well as the procedure for its storage and use, will be determined by the president.

It is expected that the state crypto reserve will become a tool for supporting national digital initiatives and developing the virtual asset market infrastructure.

A separate provision of the bill provides for the mandatory provision of virtual assets, which is permitted in both som and foreign currency.