Deputies in the Parliament of Kyrgyzstan have approved a new bill called “On Virtual Assets.” The bill passed in three readings at once, showing the government’s strong push to set clear rules for cryptocurrency. The goal is to create a full legal framework for digital tokens, stablecoins backed by fiat money, and real-world asset tokens, also called RWA tokens. This step puts Kyrgyzstan on the path to becoming one of the first Central Asian countries to regulate crypto mining, virtual asset service providers, and token circulation through law.
The new bill introduces many changes. It creates a state cryptocurrency reserve, giving the government a role in holding digital assets. It also allows the launch of government mining operations using public infrastructure. That means the state itself will mine digital coins in addition to private miners. At the same time, the bill explains how miners must register, what type of mining equipment they can use, and how they need to follow licensing rules to keep operating legally. By regulating miner registration and mining equipment standards, Kyrgyzstan hopes to bring order to the growing local crypto industry.
The bill expands the president’s power to set rules for the issuance and circulation of virtual assets. It gives the executive branch authority to guide how stablecoins and RWA tokens can be used and traded. The government also plans to use regulatory sandboxes. These sandboxes are special zones where new digital asset technologies and services can be tested with fewer restrictions. They give startups and crypto companies space to experiment while still staying under the watch of regulators.
Licensing is another major focus. The law creates two separate authorities. One authority will handle licensing for virtual asset service providers, also known as VASPs. These providers include exchanges and wallets that deal with stablecoins, RWA tokens, and other digital assets. The other authority will oversee compliance, making sure these providers follow anti–money laundering (AML) and counter-terrorist financing (CTF) measures. This division of tasks is meant to keep the system transparent and reduce risks of fraud or abuse.
The new law also responds to global pressure. Many countries are working to regulate crypto markets after years of rapid growth and cases of illegal use. By creating its own framework, Kyrgyzstan is showing that it wants to both attract investment and protect its financial system. Clear rules for stablecoin regulation, licensing, and government mining operations may help the country compete with neighbors that have not yet created full laws for digital assets.
For crypto miners in Kyrgyzstan, the law brings new responsibilities. They must register, meet equipment standards, and pay fees for licenses. For companies that want to operate as VASPs, the law offers a chance to become officially recognized. For the state, the creation of a cryptocurrency reserve and government-run mining is a sign of its plan to play an active role in the digital economy. With these steps, Kyrgyzstan is building a legal foundation for the future of virtual assets in Central Asia.
