Kyrgyzstan Approves Bill to Establish State Crypto Reserve and Mining Framework

Kyrgyzstan is moving deeper into the digital asset economy with a newly approved bill that lays the foundation for a state-managed cryptocurrency reserve and government-backed crypto mining operations.

Lawmakers passed amendments to the “On Virtual Assets” bill in three consecutive readings, formalizing terms such as “state crypto reserve” and “state mining.” The updated framework also sets legal ground for stablecoin issuance and tokenized real-world assets, signaling a broader push to integrate blockchain into the national economy.

The concept of a state crypto reserve envisions the government accumulating assets through crypto mining, tokenization of physical assets, and stablecoins backed by fiat currency. Supporters of the initiative argue that this mechanism could enhance Kyrgyzstan’s financial stability by diversifying reserves and creating new instruments for capital accumulation.

The legislation also clarifies that state mining operations will be subject to the same tariffs applied to private miners. Officials stressed that energy resources, including thermal power plants, will remain primarily dedicated to national infrastructure needs rather than large-scale crypto mining farms.

By advancing this bill, Kyrgyzstan positions itself as one of the few nations exploring direct state involvement in cryptocurrency reserves — a move that could reshape its role in the global digital asset landscape.