Key Highlights
- Kyrgyzstan passes law regulating mining, stablecoins, and digital assets.
- New bill allows creation of a national cryptocurrency reserve.
- President gains authority to set rules for virtual asset regulation.
Kyrgyzstan Adopts Groundbreaking Cryptocurrency Law
The Kyrgyz Parliament has adopted the draft law “On Virtual Assets” in three readings, introducing comprehensive regulation of the cryptocurrency sector. The legislation covers all aspects, from issuance and circulation to mining and licensing, aiming to provide legal clarity for investors and businesses.
Key Provisions and Legal Terms
The law introduces new legal concepts, including stablecoins backed by fiat currency and tokens linked to real-world assets (RWA). It also expands the powers of the president, who will now have the authority to establish regulations for digital assets.
Authorized bodies are assigned clear responsibilities:
- One body will license virtual asset service providers.
- The other will monitor compliance, especially regarding anti-money laundering and counter-terrorist financing measures.
The legislation also regulates miner registration, equipment standards for cryptocurrency mining, and licensing procedures for entities conducting transactions with digital assets, creating a structured framework for the sector.
National Cryptocurrency Reserve and State Mining Operations
According to official statements, the government plans to launch its own mining operations using state infrastructure and resources. Additionally, Kyrgyzstan aims to establish a national cryptocurrency reserve, positioning itself as a forward-looking participant in the global crypto economy.
The new law is expected to attract foreign investors, promote blockchain innovation, and create new economic opportunities. Analysts suggest it could position Kyrgyzstan as a regional leader in cryptocurrency adoption and digital asset regulation.
Source: https://coinpaper.com/10976/kyrgyzstan-adopts-new-cryptocurrency-law-to-regulate-digital-assets
