- Parliament approves a virtual assets bill enabling a state crypto reserve and government mining pending presidential signature.
- Energy policy rules out thermal power use and applies separate mining tariffs for any state-run facilities.
Kyrgyzstan’s parliament has approved amendments to the “On Virtual Assets” bill in three readings, opening the way for a state cryptocurrency reserve and government mining operations, with the measure now awaiting the president’s signature. The vote occurred on September 10 in Bishkek after committee debates earlier in the week.
Parliament defines state reserve and mining while expanding licensing and oversight
The bill formally introduces the concepts of a state cryptocurrency reserve and “state mining,” and sets out a licensing system for virtual asset providers. It also defines stablecoins backed by fiat currency and tokens referencing real-world assets, while establishing regulatory sandboxes to test services under limited conditions.
Under the text, the president is empowered to determine procedures for forming, storing, managing, and using the reserve. Officials described the reserve as a portfolio of digital assets accumulated through multiple channels including crypto mining, tokenization of state assets, and the issuance of fiat-backed stablecoins.
Lawmakers advanced these provisions alongside broader updates to market supervision and compliance, including anti-money laundering responsibilities for designated authorities.
Energy constraints and prudential rules frame state mining rollout
In response to concerns about electricity supply, the Economy and Commerce Ministry said state-run mining would not use thermal power plants and would observe the country’s separate tariff for mining. Officials pointed to the use of smaller hydroelectric capacity rather than thermal generation as the preferred approach.
The government also highlighted the scale of the domestic crypto sector to date. From January through July 2025, turnover across crypto businesses exceeded 1 trillion soms, generating roughly 900 million to 1 billion soms in tax revenue, with registries listing 169 crypto exchangers, 13 exchanges, and 11 mining firms.
These figures underline the fiscal and operational footprint that any state program would enter.
Unlike El Salvador, Pakistan, Argentina, CAR, Kazakhstan does not have an IMF loan – so this order is likely to go through unimpeded. https://t.co/QUXEUZ9S6M
— Daniel Batten (@DSBatten) September 9, 2025
Prudential measures are embedded in the framework. From January 1, 2026, any crypto exchange seeking to operate domestically would be required to hold at least 10 billion soms in authorized capital, according to parliamentary discussions summarized by local and industry reports.
Market participants will be licensed and subject to equipment and registration requirements, while supervision and policy setting for the sector will be centralized under authorities designated by the president.
The legislative package positions Kyrgyzstan to accumulate digital assets at the sovereign level while tightening rules for private operators. Whether the reserve is weighted toward Bitcoin or diversified across stablecoins and tokenized claims will depend on implementing regulations once the president signs the bill.
At the time of press, Bitcoin (BTC) is trading at US$114,130.00, marking a –0.03% decrease over the past 24 hours.
