Kyrgyzstan Establishes State Cryptocurrency Reserve and Legal Framework for Digital Assets

Kyrgyzstan's parliament has approved a landmark bill to create a state cryptocurrency reserve and establish a regulatory framework for digital assets. The legislation introduces key terms like 'state crypto reserve' and 'state mining,' signaling the country's commitment to embracing blockchain technology.

The bill, spearheaded by Economy and Commerce Minister Bakyt Sydykov, provides legal clarity for stablecoins, tokenized real-world assets, and government-operated crypto initiatives. The state crypto reserve will hold assets through mining operations, tokenization, and fiat-backed stablecoins, potentially enhancing financial stability through diversified accumulation instruments.

Minister Sydykov emphasized that mining operations will adhere to existing tariffs and won't utilize thermal power plants, clarifying that these facilities serve primary energy purposes beyond cryptocurrency mining.