Kyrgyzstan sets a record: 126 licensed crypto firms and $4.2 billion in turnover
A crypto boom has erupted in Bishkek: according to PA News, 126 officially registered companies now provide cryptocurrency market services in Kyrgyzstan — with a total transaction volume reaching a record $4.2 billion. This marks a massive leap: in 2022, there were only a few dozen licenses, and in 2024 the turnover of “virtual assets” was just $59 million.
These are not just numbers — they reflect the liberal course Kyrgyzstan has taken since adopting the “Law on Virtual Assets” in 2022. The efforts proved foundational: virtual assets were recognized as objects of civil rights, and VASP operators were acknowledged as full-fledged financial institutions under supervision. This brought legitimacy and a surge of participants to the sector.
Of the $4.2 billion, nearly 98% comes from retail exchange platforms that accept and sell USDT/USDC, Bitcoin, and altcoins. This is unsurprising: there were no strict restrictions, but operations were prompt. Commercial banks were granted the right to cooperate with crypto operators, accelerating conversions and asset flows.
Most important is stability. Oversight is provided by the State Financial Market Regulation Service, while the National Bank is involved in a consultative process with the crypto business. This created a mutually controlled market and a sandbox for launching new products.
A downside? The power infrastructure for mining is not everywhere ready for explosive growth, but electricity tax payments have already exceeded forecasts. Initiatives to reduce the tax burden (from 15% to 10%) have attracted investors — even despite strict rules.
Most notably, a new “gold-backed” stablecoin, USDKG, has been launched, issued with the support of the Ministry of Finance and directly backed by physical gold stored in the national reserves. Each token is pegged 1:1 to the US dollar, and independent firms conduct external audits via cointelegraph.com. This is not just a stablecoin — it is a state-level instrument for settlements and foreign trade.
This is an example for Central Asia: Kyrgyzstan is not playing catch-up — it has chosen the path of institutional growth in compliance with international standards. Here, crypto is not restricted by bans. A regulated environment is created where the market can integrate and grow — with records, products, and state ambition.
