Kyrgyzstan advances state crypto reserve bill

Kyrgyzstan passed amendments to the “On Virtual Assets” law, introducing a state crypto reserve and state crypto mining to boost financial stability and crypto adoption.

Law amendments define state crypto reserve

Kyrgyzstan has taken another step toward becoming a crypto-friendly hub in Central Asia. Lawmakers passed amendments to the “On Virtual Assets” bill in three readings, officially defining the concepts of “state crypto reserve” and “state crypto mining.”

The amendments were introduced by Economy and Commerce Minister Bakyt Sydykov. He explained that the reserve would allow the state to accumulate assets in cryptographic form through mining, stablecoin issuance, and tokenization of real-world assets.

Purpose of the crypto reserve

According to Sydykov, the goal is to strengthen financial stability by diversifying accumulation instruments and adopting new forms of reserves.

At the same time, the government will not be exempt from existing mining electricity tariffs.

Sydykov stressed: “There will be no mining farms at the thermal power plant. Its main purpose is power generation, not mining.”

A diversified mix of assets

The draft bill clarifies that the reserve will not rely solely on cryptocurrencies like Bitcoin. Instead, it will represent a diversified pool of virtual assets owned by the state.

“The procedure for forming, storing, managing, and using the cryptocurrency reserve is determined by the President of the Kyrgyz Republic,” the bill notes.

The legislation still requires President Sadyr Japarov’s signature. Notably, just months ago, he signed a bill introducing the country’s central bank digital currency (CBDC), showing Kyrgyzstan’s growing commitment to digital finance.