Kyrgyzstan Links Several Crypto Firms to Money Laundering

On February 26, the State Financial Intelligence Service under the Ministry of Finance of Kyrgyzstan (SFIS) included several cryptocurrency companies in a list of organizations “suspected of involvement in laundering criminal proceeds.” 

The resolution is in a restricted section of the website, but several Telegram channels have shared the document.

The list comprises 22 companies, including those based in Russia. The regulator has prohibited banks and non-financial organizations from conducting business with them.

Subsequently, based on revised data, two entities—cryptocurrency exchange TokenSpot and crypto exchanger CashBack—were removed from the SFIS list. Clients of these companies regained access to Kyrgyz banks. 

The crypto community expressed hope that other companies will soon be able to “resolve the misunderstanding.”

As of December 31, 2024, the Financial Market Regulation and Supervision Service of Kyrgyzstan had issued 137 licenses to virtual asset service providers (eight exchanges and 129 exchangers). Additionally, eight certificates were granted to industrial mining operators.

Currently, the regulator has initiated discussions on amending the regulation of the virtual assets sector in the country to address inaccuracies and enhance market transparency. Proposals from interested parties are being accepted until March 10.

Back in late 2024, the Ministry of Finance of Kyrgyzstan reported that tax revenues from local miners had decreased by 50% year-on-year.