Kyrgyzstan Moves to Legalize State Mining
Kyrgyzstan’s Jogorku Kenesh has approved amendments to the draft law on virtual assets in three readings.
The bill envisions the establishment of a state cryptocurrency reserve and the introduction of “State mining,” TuraNews.kz reports, citing Kazinform.
The amendments delegate regulatory authority over virtual asset service providers to a designated state body and set a legal framework for issuing and circulating asset-backed stablecoins and RWA (Real World Asset) tokens.
Among the key innovations are the introduction of the concepts of “state mining” and a “state cryptocurrency reserve.” The initiative is expected to improve market transparency, protect investors from fraud, and ensure that only asset-backed instruments, including foreign currency, can be issued.
Authorities expect the law to:
- foster the development of new classes of financial instruments;
- strengthen confidence in tokenized assets;
- expand tax revenues through the legalization of operations;
- attract investments into the real economy by increasing liquidity and global accessibility;
- boost the country’s technological competitiveness.
Analysts suggest the move could position Kyrgyzstan as a Central Asian leader in the digital finance sector.
