Kyrgyzstan: Parliament approves state law on bitcoin mining

The Kyrgyz government legalizes mining and aims to create a strategic bitcoin reserve to strengthen the national economy.

On September 10, the legislative assembly of Kyrgyzstan gave its final approval to a law that redefines the relationship between the State and digital assets in the country.

According to local reports, the new legislation introduces a system of government permits for bitcoin and other cryptocurrency mining, setting specific requirements for equipment.

Authorities have also established new legal classifications for stablecoins and RWA (Real-World Asset) tokens, expanding the existing regulatory framework. In addition, the State will have the option to establish its own reserves of digital assets to consolidate national financial stability.

The government will now be able to launch mining operations using state-owned infrastructure and resources. This decision will allow Kyrgyzstan to directly participate in the global mining market, potentially generating new revenue for the public treasury.

Economy and Trade Minister Bakyt Sydykov revealed significant data: in the first seven months of the year, the trading volume of cryptocurrency exchanges reached 1 trillion som (about $11.3 billion). The sector also contributed around 1 billion som (about $11.3 million) in government taxes.

The national crypto landscape currently includes 169 exchange operators, comprising 13 digital asset exchanges and 11 registered industrial mining companies.

The new legislation also introduces strict compliance measures. A dedicated authority will specifically address money laundering and terrorism financing in the sector, while another body will be responsible for issuing licenses to cryptocurrency service providers.

Alongside mining, the country is continuing the development of its own CBDC. In April, President Sadyr Japarov signed into law a bill granting legal status to the “digital som,” paving the way for a national pilot project.

“The purpose of the Constitutional Law is to launch a pilot project of a prototype of a national digital currency, the ‘digital som,’ as well as to create a legal basis and its status.” the President stated.

The final decision on the official issuance of digital assets backed by the national currency will be made by the end of 2026, while testing of the digital som will begin later this year.

The post Kyrgyzstan: Parliament approves state law on bitcoin mining appeared first on Atlas21.

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