Kyrgyzstan Approves Bill to Launch State Cryptocurrency Reserve and Mining Operations

Highlights:

• Kyrgyzstan will establish a state cryptocurrency reserve.
• The bill allows state-led crypto mining using national resources.
• Regulatory sandboxes will support digital innovation and compliance.

Kyrgyzstan’s parliament has voted on a new bill for digital assets, laying a legal basis for cryptocurrencies in the country. According to the local media report, deputies approved the bill in three readings, marking an expression of strong political support. The proposed legislation now awaits the president’s signature.

The bill contains new digital definitions, including fiat-backed stablecoins and real-world asset tokens. Moreover, it authorizes the involvement of states in mining crypto. This move is to boost the economy of the country through digital innovation.

JUST IN: 🇰🇬Kyrgyzstan’s Parliament approves bill introducing state-backed crypto mining, a national crypto reserve, and a licensing system for digital assets. pic.twitter.com/tmFFksoBQd

— Crypto India (@CryptooIndia) September 10, 2025

State Cryptocurrency Reserve Gains Legal Backing

One of the major highlights is the establishment of a state cryptocurrency reserve. This reserve will consist of mined, issued, and acquired digital assets. In addition, it will also involve the tokenization of real-world assets. The authorities said that the reserve will facilitate economic diversification.

The purpose of the reserve was explained by Economy Minister Bakyt Sydykov. He said that it would enhance financial stability, as it would diversify national holdings. Furthermore, the state will be depending on mining cryptocurrencies and tokenized assets in order to build the reserve. He further added that this effort is aimed at strengthening the fiscal basis of Kyrgyzstan.

The president will determine the formation and management of the reserve. According to the bill, this will include clear rules for use and storage. Moreover, the reserve will not be entirely dependent on such assets as Bitcoin. Instead, it will integrate multiple types of virtual assets.

Government Mining and Digital Licensing Framework

The new bill opens the door for state-run crypto mining. The mining activities will be carried out on the national infrastructure by the government. However, it will be subject to the same electricity tariffs as private miners. Energy plants such as Kambar-Ata-1 will not contain any mine farms.

The bill requires registration for all mining participants, defining standards for equipment and for licensing, which ensures operations abide by national energy rules. Moreover, a designated authority will do the licensing of virtual asset providers, while another agency will work on compliance and anti-money laundering. This split gives oversight a stronger hand while promoting industrial growth in the legal industry.

In addition, the bill promotes regulatory sandboxes. These will aid the testing of new services and technologies in regulated environments. Innovators can experiment under the protection of the law before full-scale implementation.

Crypto Policy and Regional Influence

The law provides the president with enhanced powers concerning crypto regulation. These powers include control over the issuance and circulation of the virtual assets. This central role is to help streamline digital policy and increase accountability. The bill is also a response to the increased attention in Central Asia towards the crypto sector. The move by Kyrgyzstan comes after the focus on the development of a national crypto reserve by Kazakhstan. Both countries are investing in boosting their digital economies with tools backed by the state.

Kazakhstan President Tokayev announced in his annual address that the country will establish a “National Digital Asset Fund” under the National Bank’s Investment Corporation to build a strategic crypto reserve of promising assets. He also instructed the financial regulator to…

— Wu Blockchain (@WuBlockchain) September 8, 2025

In April this year, the government of Kyrgyzstan appointed Changpeng Zhao, the co-founder of Binance, as an advisor. He suggested including Bitcoin and BNB in the state’s cryptocurrency reserve. His involvement is a reflection of the government’s interest in expert-driven policy.