Kyrgyzstan’s parliament has approved the “On Virtual Assets” bill in three readings, which regulates the cryptocurrency market in the country. This was reported by local media.
The document introduces definitions for key types of assets, particularly highlighting fiat-backed stablecoins and RWA tokens.
The president has been granted the authority to establish rules for the issuance, circulation, and regulation of cryptocurrencies. Regulatory “sandboxes” are being introduced to test innovative services and technologies.
The creation of a state cryptocurrency reserve and the launch of mining using state infrastructure and resources are also envisaged. Participants in the process must register and comply with equipment requirements.
Oversight of the crypto market is divided between two authorized bodies: one will issue licenses to virtual asset service providers, and the other will monitor compliance with requirements, including anti-money laundering and counter-terrorism financing measures.
Earlier, Kyrgyzstan announced the launch of the gold-backed stablecoin USDKG in the third quarter of 2025. The coin will be pegged to the US dollar at a 1:1 ratio and backed by a $500 million gold reserve.
In April, Binance founder Changpeng Zhao became an advisor to the Kyrgyz government on cryptocurrency and blockchain matters. Among his proposals to President Sadyr Japarov was to include Bitcoin and BNB in the national crypto reserve.