Kyrgyzstan Legalizes State-Controlled Cryptocurrency Mining

Kyrgyzstan has approved amendments to its law on virtual assets, formally legalizing state-controlled cryptocurrency mining, according to Kazinform.

The legislative changes aim to strengthen government oversight of the digital asset sector and ensure greater transparency and stability in the country’s virtual asset market.

One of the key updates is the official introduction of the concepts of “state mining” and a “state cryptocurrency reserve.” The amendments also clarify the legal definitions of stablecoins and asset-backed tokens.

In addition, the law introduces a regulatory sandbox mechanism, allowing innovative digital asset services and technologies to be tested within a controlled regulatory environment.

Under the new rules, licenses issued to virtual asset service providers will be valid for a limited period, will be non-transferable, and issued to specific entities only. All individuals and organizations involved in cryptocurrency mining will be required to undergo official registration and obtain certification.