Kyrgyzstan Passes Law Establishing State Crypto Reserve and Regulating Virtual Assets

Kyrgyzstan has passed amendments to its "On Virtual Assets" law, establishing a state cryptocurrency reserve and state-run mining. The government will accumulate digital assets directly and oversee the sector through a presidentially appointed body. The law also includes a regulatory sandbox and requires secured assets and market stability.

Kyrgyzstan has made significant strides in its digital asset landscape by passing amendments to its "On Virtual Assets" law. The new regulations establish a state cryptocurrency reserve and state-run mining operations, marking a pivotal moment for the country's financial stability and digital asset ecosystem.

The amendments, passed in three readings by the Kyrgyz Parliament on September 9, 2025, introduce a legal framework for a state crypto reserve. This reserve is designed to diversify national assets and support the country's digital asset infrastructure. The portfolio will include mined cryptocurrencies, stablecoins backed by fiat currency, and tokenized real-world assets (RWAs) Kyrgyzstan Could Establish State Crypto Reserve That Includes Bitcoin in Mixed Digital-Asset Plan^[1].

State mining operations, overseen by the same tariff rules as private operators, will play a crucial role in accumulating these digital assets. The Economy and Commerce Minister, Bakyt Sydykov, has noted that the state mining will adhere to established mining rates, ensuring energy supply priorities are maintained Kyrgyzstan Could Establish State Crypto Reserve That Includes Bitcoin in Mixed Digital-Asset Plan^[1].

The new law also shifts regulatory oversight to a presidentially appointed body, stripping the Financial Market Regulation and Supervision Service of its authority over the crypto sector. This move aims to streamline regulatory control and enhance the government's ability to manage the digital asset landscape Kyrgyzstan slips state crypto reserve framework into new bill^[2].

To foster innovation, the law includes a regulatory sandbox, allowing experimentation with new digital asset solutions in a controlled and transparent environment. This sandbox will enable the integration of RWAs on blockchains like Solana, which tie digital units to tangible assets, expanding the scope of the reserve while maintaining legal certainty Kyrgyzstan slips state crypto reserve framework into new bill^[2].

Investor protection is a key focus of the new law. It requires that only secured assets be issued, ensuring market stability and transparency. This approach aims to build trust and encourage investment in the country's digital asset sector Kyrgyzstan slips state crypto reserve framework into new bill^[2].

The next steps involve the signature of the bill by President Sadyr Japarov. Once signed, implementing regulations and presidential procedures will define operational details and timelines for the formation and management of the reserve Kyrgyzstan Could Establish State Crypto Reserve That Includes Bitcoin in Mixed Digital-Asset Plan^[1].

Kyrgyzstan's move to establish a state crypto reserve and state mining aligns with regional trends. Neighboring governments, such as Kazakhstan, are also exploring state crypto initiatives, signaling a broader shift towards formalizing state roles in digital assets Kyrgyzstan Could Establish State Crypto Reserve That Includes Bitcoin in Mixed Digital-Asset Plan^[1].

In conclusion, Kyrgyzstan's amendments to its "On Virtual Assets" law create a robust legal foundation for a state crypto reserve and state mining. This initiative aims to diversify national holdings, support financial stability, and foster innovation in the digital asset sector. The law's provisions for regulatory oversight, investor protection, and a regulatory sandbox position Kyrgyzstan as a leader in Central Asia's digital asset policy evolution.