Kyrgyzstan - The Times Of Central Asia

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Crypto Market

Kyrgyzstan’s Crypto Market Generates More Tax Revenue Than Country’s Largest Bazaar

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.

Water-Saving Technologies

Kyrgyzstan Plans Full Transition to Water-Saving Irrigation in Issyk-Kul Region

Kyrgyzstan’s government is preparing to fully transition the Issyk-Kul region to water-saving irrigation technologies, offering farmers preferential financing amid growing concerns over falling water levels in the country’s largest lake and key tourist destination. Speaking in parliament on February 11, Deputy Chairman of the Cabinet of Ministers and Minister of Water Resources, Agriculture, and Processing Industry Bakyt Torobaev announced that farmers adopting drip or sprinkler irrigation systems will be eligible for low-interest loans at a preferential 2% rate. Lending is expected to begin next month. Torobaev emphasized the urgency of reducing agricultural water consumption to stabilize inflows into Lake Issyk-Kul. “If we switch to drip irrigation, more water will flow into Issyk-Kul. If we use all the water for agriculture, none of it may reach the lake. Therefore, our goal is to fully transition the Issyk-Kul region to drip and sprinkler irrigation,” he told lawmakers. Environmental pressure on the Issyk-Kul basin has intensified due to climate change and accelerated glacier retreat. The basin contains 957 glaciers, covering about 560.8 square kilometers, many of which are shrinking rapidly. Although around 120 rivers feed the lake, only about 80 reach it during the summer months due to irrigation withdrawals. Between 1927 and 2003, the lake’s level dropped by 2.75 meters, an effect largely attributed to inefficient water use. Policy support for conservation has recently been formalized. In December 2025, the Cabinet of Ministers approved the Concept for the Sustainable Development of the Ecological and Economic System of Lake Issyk-Kul through 2030, alongside a detailed action plan prioritizing the adoption of water-saving agricultural technologies. Under current plans, modern irrigation systems will be installed on 100,000 hectares of farmland across the Issyk-Kul region, potentially redirecting up to 200 million cubic meters of water back into the lake annually. Nationwide, adoption of water-efficient irrigation remains limited but is accelerating. According to the Ministry of Water Resources, Agriculture, and Processing Industry, modern irrigation technologies currently cover around 16,000 hectares. The authorities aim to expand that area by 30,000-40,000 hectares each year, targeting 200,000 hectares under water-saving irrigation by 2030. State-funded installations are also increasing. In 2026, drip and sprinkler systems are scheduled to be deployed on 5,270 hectares. Between 2024 and 2025, such systems were installed on 2,369 hectares, 641 hectares with drip irrigation, and 1,728 hectares with sprinkler systems. Kyrgyzstan currently has approximately 1 million hectares of irrigated agricultural land overall.

Electric Vehicles

Kyrgyzstan to Install Electric Vehicle Charging Stations in Key Tourist Region

State-owned Chakan GES OJSC will install 10 electric vehicle (EV) charging stations across the Issyk-Kul region, Kyrgyzstan’s primary tourist destination, and home to Lake Issyk-Kul and the country’s largest mountain ski resort in Karakol. The initiative is being implemented with support from the Ministry of Energy as part of ongoing efforts to promote environmentally friendly transportation and enhance tourism and transport infrastructure in the region. The new stations will be located in Karakol, the administrative center of the Issyk-Kul region (2 stations); Cholpon-Ata, the main resort hub (2); Balykchy (2); and the villages of Bokonbaevo (1), Kyzyl-Suu (1), and Tyup (2). All are scheduled to begin operations later this year. The number of electric vehicles in Kyrgyzstan is steadily rising. According to First Deputy Prime Minister Daniyar Amangeldiev, more than 200 EVs are imported into the country daily under a VAT exemption scheme. As a member of the Eurasian Economic Union (EAEU), Kyrgyzstan has an annual quota allowing for the duty-free import of up to 15,000 electric vehicles. Despite this growth, EVs still make up a small share of the national vehicle fleet. According to Minister of Natural Resources, Ecology, and Technical Supervision Meder Mashiev, Kyrgyzstan had over 1.9 million registered vehicles as of early 2026, a 13% increase from 2024. Of these, 972,000 run on gasoline, 339,000 on diesel, 56,900 on gas, and 37,000 are hybrids. Electric vehicles account for just 0.8% of the total, or approximately 15,200 units. The government is also advancing plans to localize EV assembly as part of its broader strategy to expand eco-friendly transport options and combat air pollution, particularly in cities like Bishkek. In June 2025, the Ministry of Economy and Commerce signed a memorandum of understanding with South Korean firms EVSIS, NGS, and the Korea Automobile Environment Association. The agreement focuses on developing EV charging infrastructure in Bishkek. As The Times of Central Asia previously reported, South Korean partners also intend to launch production of EV charging stations in Kyrgyzstan, aiming to establish local manufacturing and create a nationwide charging network across major cities and regions.

Dismissals

Kyrgyz President Dismisses Right-Hand Man to “Prevent a Split in Society”

A political earthquake hit Kyrgyzstan on February 10. The tandem of President Sadyr Japarov and security chief Kamchybek Tashiyev was seemingly broken when Japarov dismissed Tashiyev from his post. The reason given for relieving Tashiyev of his position was that it was “in the interests of our state, in order to prevent a split in society, including between government structures,” which hinted that something serious had caused the rift. Old Friends After the brief tumultuous events of October 5-6, 2020, that saw the government of President Sooronbai Jeenbekov ousted in the wake of parliamentary elections plagued by violations, Japarov came to power and appointed Tashiyev to be head of the State Committee for National Security (GKNB). The two have remained in those positions and were often referred to as a tandem. Some believe Tashiyev has actually been the one making many of the important state decisions. Their relationship goes back much further, to the days when Kurmanbek Bakiyev was Kyrgyzstan’s president from 2005-2010. In August 2006, Japarov, Tashiyev, and some other politicians from Kyrgyzstan’s southern Osh area cofounded the Idealistic Democratic Political Party of Kyrgyzstan, which later became the foundation for the Ata-Jurt party. Both Japarov and Tashiyev were supporters of President Bakiyev. When Bakiyev was forced to flee the country after the 2010 revolution in Kyrgyzstan, the Ata-Jurt party became the strongest opposition party to the government that emerged after the revolution. Ata-Jurt won the most seats, 28, in the snap October 2010 parliamentary elections, and among the party’s deputies were Japarov, Tashiyev, and another politician named Talant Mamytov. The three Ata-Jurt deputies helped organize anti-government protests, and during one outside the government building in Bishkek in October 2012, Japarov, Tashiyev, and Mamytov jumped the fence and led an armed crowd to the building. All three were convicted in 2013 of trying to overthrow the government. They were sentenced to a mere 18 months in prison, but did not even serve that, with all three being released in July 2013. Japarov helped lead a protest in Kyrgyzstan’s northeastern Issyk-Kul Province in October that year. A local official was captured and briefly held by protesters, and after order was restored, Japarov was charged with hostage-taking. He fled the country and only returned in March 2017. Japarov was immediately arrested and sentenced to 11 ½ years in prison. A crowd released Japarov from prison when unrest started on October 5, 2020. Tashiyev was among those who quickly put forth Japarov to be Kyrgyzstan’s next leader, and by October 15, Japarov was both acting prime minister and acting president. He appointed Tashiyev to be GKNB chief on October 16. Mamytov was elected speaker of parliament on November 4, 2020. The Dismissal Tashiyev was in Germany receiving medical treatment when Japarov dismissed him. On February 11, Tashiyev commented from Germany on his dismissal, calling it unexpected, but said he would heed the president’s decision. “I served our state, people, and president honorably, and I'm proud of it,” Tashiyev said, and expressed his “gratitude...

Revolution

Kyrgyzstan’s Revolutions Since Independence: Three Uprisings That Remade the State

Since gaining independence in 1991, Kyrgyzstan has experienced three major uprisings that removed presidents and reset the political system. The events in 2005, 2010, and 2020 did not follow one script, but shared familiar triggers: disputed elections, corruption, rising living costs, and a belief that the state had been captured by a narrow circle. Kyrgyzstan began its post-Soviet life with a reputation for relative openness. Askar Akayev initially presented himself as a reform-minded leader, but by the early 2000s, public frustration had grown over perceived corruption and patronage. Political competition increasingly revolved around money, influence networks, and regional loyalties. Weak institutions made leadership transitions risky, and street politics became a recurring instrument of change. The 2005 Tulip Revolution: The Akayev Era Ends The first upheaval occurred in spring 2005, following parliamentary elections widely criticized by international observers. The OSCE/ODIHR final report on the February–March 2005 parliamentary elections documented serious irregularities that undermined confidence in the vote: Protests began in the south and spread to Bishkek. On March 24, 2005, Akayev fled the country as demonstrators seized key government buildings. His resignation was later formalized from abroad. Radio Free Europe/Radio Liberty reported on April 4, 2005, that Akayev had signed a resignation agreement intended to stabilize the situation and pave the way for new elections. Kurmanbek Bakiyev emerged as interim leader and later won the July 2005 presidential election. The OSCE/ODIHR assessment of that vote noted improvements compared with the parliamentary elections but highlighted continuing structural weaknesses. The 2010 April Revolution: Bakiyev Overthrown By 2010, public anger was focused on rising utility prices and the concentration of power around Bakiyev’s family. The International Crisis Group’s report Kyrgyzstan: A Hollow Regime Collapses detailed how economic grievances and corruption helped spark a violent uprising. On April 7, 2010, clashes between protesters and security forces in Bishkek left dozens dead and injured, with the official death toll later revised to 99. Bakiyev fled the country, and a referendum later that year shifted Kyrgyzstan toward a parliamentary system designed to reduce presidential dominance. The transition produced a more plural political environment, though corruption and instability persisted. In June 2010, interethnic violence in southern Kyrgyzstan, particularly around Osh, caused significant loss of life and displacement, deepening divisions and reshaping the political climate. The 2020 Upheaval: Election Protests and Rapid Power Shift Kyrgyzstan’s third major uprising followed disputed parliamentary elections on October 4, 2020, when allegations of vote buying triggered mass protests. The Central Election Commission annulled the results, plunging the country into a political crisis. President Sooronbay Jeenbekov resigned on October 15, 2020, with Reuters reporting that “newly sprung from jail,” Sadyr Japarov had consolidated power amid the turmoil. The OSCE/ODIHR assessment of the January 2021 presidential election and constitutional referendum noted that the vote occurred against the backdrop of political upheaval following the annulled parliamentary elections. Japarov won the presidency in January 2021, and a new constitution entered into force in May 2021, strengthening presidential powers and reshaping the political system. Why Revolutions Keep Happening...

Water Access

Kazakhstan and Kyrgyzstan Resume Data Sharing on Reservoirs and Transboundary Rivers

Kazakhstan and Kyrgyzstan have renewed formal cooperation in hydrometeorology, agreeing to exchange key hydrological data on major reservoirs and transboundary rivers, a development officials say is vital for regional flood management and agricultural planning. The agreement covers data exchange on the Kirov, Orto-Tokoy, and Toktogul reservoirs, all located in Kyrgyzstan but directly influencing downstream water supply in Kazakhstan. The signing took place on February 9 in Astana, where Kyrgyzstan’s First Deputy Minister of Emergency Situations Mambetov Muratovich and Kazakhstan’s First Deputy Minister of Water Resources and Irrigation Nurlan Aldamzharov endorsed a 2026-2028 cooperation program between Kazhydromet and the Kyrgyz Hydrometeorological Service. Key Components of the Agreement The three-year program includes: Regular exchange of hydrological data on shared rivers and reservoirs Joint forecasting of basin runoff and water accumulation Mutual hazard and storm warnings Scientific and technical collaboration Professional exchange between agencies Describing the agreement as an achievement of "water diplomacy," Aldamzharov emphasized that timely data is critical to protecting populations and infrastructure downstream, especially during peak water flow and flood risk periods. Strategic Role of Kyrgyz Water Infrastructure Kyrgyzstan plays a pivotal upstream role in Central Asia’s water system, delivering seasonal irrigation flows to southern Kazakhstan’s Turkistan, Kyzylorda, and Zhambyl regions via the Chu, Talas, and Syr Darya rivers. Each of the reservoirs included in the data-sharing agreement serves a distinct strategic function: Kirov Reservoir: Located in Kyrgyzstan’s Talas region, near the Kazakh border; vital for irrigating farmland on both sides. Orto-Tokoy Reservoir: Situated on the Chu River, which flows into Kazakhstan, it regulates seasonal supply for downstream agriculture. Toktogul Reservoir: Kyrgyzstan’s largest, located on the Naryn River, the principal tributary of the Syr Darya, one of Central Asia’s main water arteries feeding Kazakhstan and Uzbekistan. According to Kazakhstan’s Ministry of Water Resources, during the 2025 growing season, Zhambyl region received 160 million cubic meters of water via the Chu River and 427.5 million cubic meters via the Talas River under existing water allocation frameworks. Water Stress Ahead of Growing Season Authorities warn that the Syr Darya basin continues to experience low-flow conditions. Reduced inflows to the Naryn-Syr Darya system are threatening irrigation reliability for the upcoming agricultural season. The Toktogul Reservoir may reach near-record low levels, heightening risks for downstream farmers. In response, agricultural authorities in southern Kazakhstan have urged the adoption of water-saving irrigation technologies, a shift away from water-intensive crops, and greater reliance on drought-resistant varieties-steps that make access to reliable hydrological forecasts increasingly urgent.