Kyrgyzstan’s virtual asset market has rapidly become one of the fastest-growing segments of the national economy. In the first nine months of 2025 alone, the country’s cryptocurrency turnover exceeded $7.9 billion, a figure that industry insiders believe could continue to rise substantially.
Kyrgyz law currently permits fully legal cryptocurrency transactions, and the authorities are actively working to enhance regulation and oversight. According to official figures, the total volume of crypto transactions last year surpassed $20.5 billion, generating $22.8 million in tax revenue.
Temir Kazybaev, Chairman of the Association of Virtual Asset Market Participants, told The Times of Central Asia that tax income from crypto turnover has already outpaced revenue collected from the Dordoi bazaar, Kyrgyzstan’s largest commodity trading hub, as well as the total from voluntary patent fees.
“Just over $7.9 million in taxes was collected from the Dordoi bazaar over the year. Patent tax collection totaled $13.6 million. In other words, the entire market and all individuals in Kyrgyzstan working under a patent paid as much tax as was collected from cryptocurrency turnover,” Kazybaev explained.
He noted a significant shift in public perception of the sector.
“A few years ago, most Kyrgyz people saw the crypto market as a scam or a pyramid scheme. That perception is changing. People and businesses now see it as an opportunity. This is in large part because President Sadyr Japarov is personally invested in the topic,” Kazybaev said.
He also highlighted recent developments in the market’s professional infrastructure.
“The development of virtual assets is a critical area. As far as I know, the National Council on Virtual Assets has a dedicated secretariat, and our association is deeply involved in this work. Educational events are being held actively. We are training compliance officers, including those focused on crypto, and we’ve already trained two groups of accountants in crypto asset accounting,” he said.
As of early 2026, more than 200 crypto exchanges and 11 mining companies are officially registered in Kyrgyzstan. The sector received a further boost with the launch of the USDTKG digital asset, a token said to be backed by Kyrgyz gold, which is gradually gaining domestic recognition.
