Kyrgyzstan Approves Landmark Crypto Law Allowing State Mining and National Reserve
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Kyrgyzstan’s Parliament has passed the “On Virtual Assets” law, giving the government power to mine cryptocurrency, build a state crypto reserve, and regulate the sector. The bill defines stablecoins and tokenized assets, allows regulatory sandboxes for innovation, and introduces stricter oversight against money laundering. With over $11 billion in crypto trading volume in 2025 so far, the move positions Kyrgyzstan to capture revenue, strengthen its economy with digital reserves, and attract crypto businesses. However, challenges remain, including energy demands from government mining, risks of state overreach, and the need for transparency. If implemented well, Kyrgyzstan could become a regional leader in crypto governance, marking one of the boldest state-led entries into digital assets in Central Asia.