Kyrgyzstan Reports $7 Billion in Crypto Transactions Amid Sanction Evasion Concerns

Kyrgyzstan's National Investments Agency disclosed $7 billion in registered cryptocurrency transactions by the end of 2024. The figure emerged during high-level talks between Kyrgyz officials and U.S. diplomats, where digital asset regulation took center stage.

The Central Asian nation solidified its crypto framework in 2022 with the "On VIRTUAL Assets" law. President Sadyr Zhaparov's administration now oversees a thriving blockchain ecosystem that includes mining operations and AI development—positioning Kyrgyzstan as a regional leader in digital innovation.

Discussions with U.S. Ambassador Lesslie Viguerie highlighted the country's pioneering CBDC initiative, the digital som. This development comes as international observers scrutinize potential Russian use of Kyrgyz crypto exchanges to circumvent Ukraine war sanctions.