Regulatory Framework for Virtual Assets
Since the beginning of 2022, the country has implemented the primary legislation to regulate the virtual asset market, which includes:
- Law "On Virtual Assets";
- Law "On Counteracting the Financing of Terrorism and Legalization of Criminal Proceeds";
- Tax Code;
- Resolution of the Cabinet of Ministers No. 514 dated September 16, 2022;
- Resolution of the Cabinet of Ministers No. 625 dated September 30, 2025.
Development and Current State of the Virtual Asset Market
Rules have been established to regulate the activities of exchange and trading operators of virtual assets, as well as the process of issuance and certification in the mining sector. A Unified State Register has been introduced, which has registered 5 issues of virtual assets.
On October 31, 2025, the first national stablecoin — USDKG, backed by gold, was registered, amounting to 50,140,738 stablecoins. The nominal value of one stablecoin is 1 US dollar, totaling over 50 million dollars. The issuer is the Joint Stock Company "Issuer of Virtual Assets," whose sole founder is the Ministry of Finance of Kyrgyzstan.
Currently, 185 licenses have been issued for exchange operators, 13 licenses for trading operators, and 10 certificates for mining. The total volume of operations by virtual asset service providers amounted to 1,784.18 billion soms, and the amount of taxes paid was 2,041.7 million soms, indicating a significant contribution of the sector to the country's economy.
As a result of supervisory activities, 41 administrative protocols were drawn up for a total of 1,121,000 soms, licenses were revoked from 20 companies, and the action of three licenses was suspended. The recorded violations are related to the failure to submit reports and non-compliance with internal control standards.
Challenges and Directions for Improving Regulation
Financial supervision continues to improve the regulatory framework. In 2024-2025, a series of amendments aimed at:
- increasing investment attractiveness;
- strengthening supervision;
- reducing risks of money laundering and financing terrorism;
- creating a transparent environment for digital investments.
On September 30, 2025, Resolution No. 625 was adopted, which significantly strengthens the requirements for operators. Key provisions include:
- conducting AML/CFT checks on transactions through regulators;
- identification and verification of clients;
- prohibition on transactions with high-risk assets;
- approval of key officials with the regulator;
- having internal policies for combating money laundering;
- mandatory storage of documents related to AML/CFT for at least 5 years.
Expanding Investment Opportunities
To increase trust in digital instruments, a ban on the issuance of unsecured virtual assets has been introduced, allowing registration only for secured assets with reliable collateral, such as:
- government securities;
- company shares;
- rights to minerals;
- gold or cash.
Measures for independent assessment of securing assets and mandatory registration of collateral have also been introduced, aligning with the strategic goals of creating an open and secure digital economy.
Regulating the Activities of Miners
To regulate the work of miners, the concept of a Unified State System for Collective Mining has been introduced. Participants combine their computing power, and the results of mining must be sold through licensed operators.
Requirements for operational and financial reporting have also been established, as well as mandatory use of a personal account on the platform of the system.
Enhancing Client Protection and Strengthening Control
The resolution introduces additional guarantees for client rights and strengthens the responsibility of service providers:
- the obligation to store information about testing clients on risk awareness;
- conducting transactions only under contracts or public offers;
- providing complete information about risks and conditions;
- mandatory external audit.
Additionally, for residents of Kyrgyzstan, a ban on transactions with virtual assets through unlicensed providers is introduced, aimed at minimizing shadow activities.
These changes reflect Kyrgyzstan's commitment to comply with international standards, including FATF recommendations, creating a foundation for the stable and secure development of the crypto ecosystem.
The digital economy should serve the interests of citizens and strengthen the economic sovereignty of the country, thus creating a transparent and regulated environment for virtual assets is a key direction of state policy.
State System for Analysis and Control in the Field of Virtual Assets — "Software and Hardware Complex. Crypto Control System "Runex" (SKK "Runex").
As part of the plan to reduce the risks of financing terrorism and legalizing criminal proceeds, approved on July 28, 2023, the digital platform RUNEXKG was launched in December 2024, designed for the registration, monitoring, and analysis of the activities of virtual asset service providers in Kyrgyzstan.
The RUNEXKG platform provides:
- creation of a secure analytical infrastructure;
- monitoring compliance with legislation;
- control of operations in mining;
- functioning of a mining pool;
- researching international practices and preparing recommendations;
- monitoring operations with virtual assets and checking transactions for compliance with legislation.
