Kyrgyzstan Establishes State Crypto Reserve and Mining Law

Kyrgyzstan’s parliament has amended its virtual assets law to establish a state crypto reserve and launch state-run mining. Oversight transfers from the Financial Market Regulation and Supervision Service to a new presidentially appointed body responsible for licensing and supervising digital asset service providers. The state crypto reserve is legally defined as a diversified portfolio of digital assets—mined, acquired and tokenized by the state. Eligible assets include Bitcoin and secured stablecoins backed by fiat or real-world assets on blockchains such as Solana. State-backed miners will pay the same energy tariffs as private operators, addressing power supply concerns. A regulatory sandbox will test blockchain innovations under strict transparency and investor protection rules, permitting only assets with verifiable backing. In May, Binance partnered with the government’s Council for the Development of Digital Assets to advise on implementation. Kyrgyzstan joins Kazakhstan in pioneering national crypto reserve plans, marking a bullish shift in digital economy integration.