Kyrgyzstan Adopts New Cryptocurrency Law to Regulate Digital Assets

Key Highlights Kyrgyzstan passes law regulating mining, stablecoins, and digital ￰0￱ bill allows creation of a national cryptocurrency ￰1￱ gains authority to set rules for virtual asset ￰2￱ Adopts Groundbreaking Cryptocurrency Law The Kyrgyz Parliament has adopted the draft law “On Virtual Assets” in three readings, introducing comprehensive regulation of the cryptocurrency ￰3￱ legislation covers all aspects, from issuance and circulation to mining and licensing, aiming to provide legal clarity for investors and ￰4￱ Provisions and Legal Terms The law introduces new legal concepts, including stablecoins backed by fiat currency and tokens linked to real-world assets (RWA).

It also expands the powers of the president, who will now have the authority to establish regulations for digital ￰5￱ bodies are assigned clear responsibilities: One body will license virtual asset service ￰6￱ other will monitor compliance, especially regarding anti-money laundering and counter-terrorist financing ￰7￱ legislation also regulates miner registration, equipment standards for cryptocurrency mining, and licensing procedures for entities conducting transactions with digital assets, creating a structured framework for the ￰8￱ Cryptocurrency Reserve and State Mining Operations According to official statements, the government plans to launch its own mining operations using state infrastructure and resources.

Additionally, Kyrgyzstan aims to establish a national cryptocurrency reserve, positioning itself as a forward-looking participant in the global crypto ￰9￱ new law is expected to attract foreign investors, promote blockchain innovation, and create new economic ￰10￱ suggest it could position Kyrgyzstan as a regional leader in cryptocurrency adoption and digital asset regulation.