In the first half of 2026, Kyrgyzstan’s regulated virtual asset market recorded a transaction volume of 2.2 trillion soms across roughly 3.8 million transactions over the six-month period, according to Farkhat Iminov, director of the National Agency for Virtual Assets and Blockchain Technologies, in an interview with Erkin-Too newspaper, as reported by 24.kg.
The figure represents roughly 80 percent of the 2.74 trillion soms recorded across all of 2025, which itself nearly tripled the 923.7 billion soms turnover of 2024. Iminov said the cryptocurrency and virtual asset market in the country is developing rapidly.
Tax revenues from virtual asset service providers totaled approximately 1.48 billion soms in 2025, and as of October 2026, 172 licensed providers were operating in Kyrgyzstan.
Presidential Decree Establishes New Regulatory Agency
In May 2026, President Sadyr Japarov signed a decree establishing the National Agency for Virtual Assets and Blockchain Technologies. Its mandate included building a state regulatory framework for the market, safeguarding users, and fostering conditions conducive to the growth of digital financial instruments.
Secondary Legislation and Digital Platform Under Development
It has prepared a set of secondary laws covering the issuance and circulation of stablecoins and real-world asset-backed tokens, the licensing of cryptocurrency exchanges and trading operators, and mining activities. The draft regulations underwent public discussion, during which approximately 240 proposals and comments were received.
A unified digital platform for regulation and supervision is also in development. Users will be able to file license applications, track market participants, and confirm details about licensed firms through the platform. It will incorporate artificial intelligence for document analysis and blockchain analytics tools, and a special regulatory committee within the agency will collectively review applications for licenses and permits.
Regulator Warns of Investment Risks
Iminov pointed out the dangers tied to virtual asset investments, cautioning that blockchain technology does not remove the threats of cyberattacks, fraud, software vulnerabilities, or losing access to digital wallets. Virtual asset prices can also fluctuate significantly.
He urged citizens to confirm that service providers possess the necessary licenses and to thoroughly examine the terms and conditions of any transactions. While a license authorizes a company to carry out regulated activities, it offers no assurance regarding the security of invested funds or any return on investment.
Potential Economic Impact Depends on Implementation
Further market development could help attract investment, encourage the establishment of technology companies and create new jobs, according to Iminov. Yet the real economic effect will hinge on how well regulation is crafted and how effectively the projects are put into practice.
Questions About Kyrgyzstan’s Virtual Asset Market
How can citizens verify if a virtual asset service provider is licensed?
The agency is developing a unified digital platform that will allow users to verify information about licensed companies. As of October 2026, 172 licensed virtual asset service providers were operating in Kyrgyzstan. Citizens should check whether service providers hold the required licenses before engaging in transactions.
What risks does the regulator warn about when investing in virtual assets?
Farkhat Iminov noted that blockchain technology does not eliminate risks of cyberattacks, fraud, software vulnerabilities or loss of access to digital wallets. Virtual asset prices can also fluctuate significantly. While a license authorizes a company to carry out regulated activities, it offers no assurance regarding the security of invested funds or any return on investment.
What new regulations are being developed for digital assets?
The agency has drafted secondary legislation to regulate the issuance and circulation of stablecoins and tokens backed by real-world assets. The package also covers licensing of cryptocurrency exchanges and trading operators, as well as mining. The drafts underwent public discussion that received approximately 240 proposals and comments.
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