365Crypto
Kyrgyzstan is making a bold move in Central Asia’s crypto race. Lawmakers have passed changes to the “On Virtual Assets” bill that introduce new concepts like a state crypto reserve and government-run mining.
What the bill covers
The proposal, presented by Economy and Commerce Minister Bakyt Sydykov, creates a framework for stablecoins, tokenized real-world assets (RWAs), and other state-backed crypto operations. A reserve would let the government build digital assets through mining, tokenization, and issuing stablecoins tied to fiat money.*
(*Stablecoin: a cryptocurrency pegged to a real-world asset like the US dollar.)
Boosting stability with crypto
Sydykov said the reserve could diversify Kyrgyzstan’s financial system and make it more stable. He stressed that the government will follow the same mining tariffs as private players. “There will be no state farm at the power plant. Its job is not mining,” he told parliament.
A mix of assets
The law states the reserve won’t just hold Bitcoin. It will include different digital assets owned by the government. The President will decide how the fund is managed, stored, and used.
The bill now heads to President Sadyr Japarov for approval. Just months ago, he signed off on a central bank digital currency (CBDC) law, showing Kyrgyzstan’s growing digital finance push. Neighboring Kazakhstan is also looking at a strategic crypto reserve, highlighting a regional race in state-backed digital assets.
