Kyrgyzstan’s parliament, the Jogorku Kenesh, has approved a government initiative to regulate the inheritance of electronic money, with the National Bank also backing the proposal.
According to the regulator, the popularity of electronic wallets in the country continues to grow. Their number has exceeded 6.5 million, marking an annual increase of about 20%. In the first six months of last year alone, the volume of electronic wallet transactions reached $3.2 million, while the total number of transactions amounted to 132 million.
At the same time, there have been no unified rules governing the inheritance of electronic funds, leading to disputes, including legal conflicts. The National Bank noted that many e-wallets remain unidentified and that legislation has lagged behind the rapid development of digital financial instruments.
Following the completion of public consultations, amendments are expected to be introduced to the Civil Code of Kyrgyzstan recognizing electronic money as part of a citizen’s property. This would allow funds held in electronic wallets to be inherited on an equal basis with bank accounts.
Previously, commercial banks were required to resolve such matters independently, which often resulted in legal disputes. In some cases, after the death of an e-wallet owner, funds were transferred to only one heir, typically the first to contact the bank. The new law is intended to establish a clear and uniform inheritance procedure.
Under the draft amendments, once notified of a customer’s death, a bank will be required to block transactions on the e-wallet account at the request of a notary. After heirs’ rights are verified, the funds will be distributed in accordance with the procedure established by law.
Financial institutions will also be required to provide notaries with information not only about the deceased’s bank deposits but also about their electronic wallets and other financial assets.
In comments to The Times of Central Asia, representatives of the National Bank said that the sums citizens hold in electronic wallets have become significant, prompting the regulator to support the initiative put forward by the Ministry of Justice.
Elizat Zhaparova, head of the banking supervision department, noted that amendments to the law on the protection of bank deposits were adopted last year, and the National Deposit Protection Agency now guarantees the safety of bank deposits. She added that extending similar inheritance provisions to electronic wallets is a logical step.
The reform marks a move toward aligning Kyrgyzstan’s digital financial sector with civil law, closing a regulatory gap and reducing the risk of disputes among heirs.
