The turnover on cryptocurrency platforms operating in Kyrgyzstan exceeded $11 billion in the first seven months of the year, according to the country’s economy minister.
The estimate comes after the Central Asian nation’s booming crypto sector was recently hit with sanctions by both the U.S. and the U.K. over suspicions that it’s being used by Russia.
Kyrgyzstan reveals cryptocurrency flow volume
Almost 200 crypto companies are currently active in Kyrgyzstan, its Minister of Economy and Commerce, Bakyt Sydykov, revealed at a meeting of the parliamentary Committee on Budget, Economic and Fiscal Policy in Bishkek.
The government official took part in discussions on the upcoming amendments to the country’s law “On Virtual Assets,” the main piece of legislation regulating the space.
Answering questions from members of the Jogorku Kenesh, Kyrgyzstan’s parliament, he detailed that this includes 169 money exchangers working with digital coins, 13 cryptocurrency exchanges and 11 companies involved in industrial crypto mining, all registered in Kyrgyzstan.
Providing more information about the size of the market, Sydykov highlighted:
During the same period, the tax payments of these entities to the state budget amounted to between 900 million and 1 billion Kyrgyzstani soms ($10.2 – $11.4 million), Sydykov also unveiled, noting “this industry is developing every year.”
Starting from January 1, 2026, crypto exchanges that want to work in Kyrgyzstan will have to prove authorized capital of at least 10 billion soms (almost $115,000).
According to Bakyt Sydykov, the new requirement is being introduced to strengthen confidence in the market and facilitate its growth.
The legislative update comes weeks after authorities in both the U.S. and the U.K. imposed fresh sanctions on Kyrgyzstan-registered crypto firms, allegedly used by Russia to fund its war effort in Ukraine.
The new penalties, on top of similar measures against Kyrgyz banks earlier this year, prompted the country’s leader, Sadyr Zhaparov, to appeal to President Donald Trump and Prime Minister Keir Starmer, urging them “not to politicize economy.”
Kyrgyzstan prepares to create crypto reserve
The deputies in the budget committee approved the draft crypto bill in three consecutive readings at once, the 24.kg news website reported.
The draft law also seeks to implement important proposals such as to organize the mining of cryptocurrencies by state-owned enterprises and to establish a “state cryptocurrency reserve.”
Quoted by the Caravan Info news agency, the economy minister explained that these steps will allow Kyrgyzstan to accumulate digital assets through mining, tokenization of other assets and the issuance of stablecoins backed by the national fiat currency.
The crypto reserve will strengthen the country’s financial stability, Sydykov stressed.
Other countries in the region that have recognized the benefits of keeping crypto assets include neighboring Kazakhstan, which moved ahead this week with its own plan to set up a reserve of major cryptocurrencies, as reported by Cryptopolitan.
The representative of the executive power in Bishkek also addressed lawmakers’ concerns that large-scale crypto mining may negatively impact households in residential areas, as a result of its high energy consumption. Kyrgyz MP Dastan Bekeshev remarked:
Sydykov reminded that the government has introduced separate electricity rates for crypto mining facilities, adding these will apply to state-run crypto farms as well.
He also pointed out that the country’s big thermal and hydroelectric power plants are not powering crypto mining operations. Mainly smaller hydro stations are used for that purpose and Kyrgyzstan is currently building another 15 such installations, in addition to its existing 17.
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Source: https://www.cryptopolitan.com/kyrgyzstan-exchanges-process-11-billion/
