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Digital assets

Kyrgyzstan Advances Digital Asset Strategy with Support from Binance

The second meeting of Kyrgyzstan’s National Council for the Development of Virtual Assets and Blockchain Technologies was held in Bishkek on October 24, with the participation of President Sadyr Japarov and Changpeng Zhao, founder of Binance, the world’s largest cryptocurrency exchange. Following the meeting, Zhao, who serves as a public adviser to Japarov on digital asset development and is a member of the Council, announced on X that Kyrgyzstan’s national stablecoin, the KGST, has officially launched on @BNBChain. The KGST is pegged to the Kyrgyz som. Zhao also confirmed the creation of a National Cryptocurrency Reserve and the full localization of the Binance app for Kyrgyz-speaking users. Japarov and Zhao previously met in May to discuss the digital future of Kyrgyzstan. Their agenda included developing a national digital asset ecosystem, integrating blockchain into public administration, and strengthening cybersecurity. Zhao pledged Binance’s support through training and expertise for specialists working on the country’s digital currency initiative. As part of this collaboration, the National Council and Binance are preparing to launch an online educational platform in the Kyrgyz language, aimed at providing basic knowledge about virtual assets. The platform will be accessible to the general public. During the Council meeting, Japarov underscored Kyrgyzstan’s pioneering role in the region, highlighting that the country has enacted legislation to regulate virtual assets and is actively pursuing a coherent government policy in the sector. He noted the national market is expanding, with an increasing number of licensed participants, a stronger regulatory framework, and new infrastructure projects emerging. Japarov pointed to several national advantages, including a flexible institutional environment, a motivated and tech-savvy youth population, and the ongoing digitalization of public services, as key factors driving Kyrgyzstan’s ambition to become a regional hub for digital finance. “The combination of these factors makes the goal of transforming the country into a regional hub for virtual assets realistic and achievable,” he stated. Melis Turgunbaev, Chairman of the National Bank of Kyrgyzstan, announced that the digital som project has entered its practical implementation phase. The initiative aims to create a fully regulated blockchain-based payment system under the control of the National Bank, which will oversee the issuance and circulation of the digital currency.

Agriculture

Kazakhstan to Pilot Blockchain-Based Grain Token in Kostanay Region

Kazakhstan’s newly established Ministry of Artificial Intelligence and Digital Development, in cooperation with the Astana International Financial Centre (AIFC) and regional authorities, has announced a pilot project to introduce blockchain technology in the agricultural sector. The initiative, set to launch in the Kostanay region, will test the tokenization of grain, transforming a physical commodity into a digital asset. Tokenization involves converting physical goods into digital tokens on a blockchain platform, enabling new forms of trade, payment, and financing. According to Deputy Minister of AI and Digital Development Kanysh Tuleushin, the use of blockchain in agriculture could transform how grain is managed, traded, and financed. “Blockchain reduces the time and costs of financing for farmers, minimizes fraud, and turns grain into a fully-fledged financial instrument that can be used for payments, trade, loans, and risk insurance,” Tuleushin said during a recent government meeting. From Pilot to National Rollout The pilot will begin in the Kostanay region, one of Kazakhstan’s leading grain-producing areas alongside Akmola and North Kazakhstan regions. If successful, the program is expected to expand nationwide, Tuleushin added. This is not Kazakhstan’s first foray into grain tokenization. In 2020, the Qoldau.kz platform launched a prototype cryptocurrency known as Bidaicoin, aimed at enabling direct settlement between wheat producers and traders without involving banks. In 2022, legal amendments allowed grain warehouse receipts to be replaced with digital tokens. Harvest and Export Outlook At the same meeting, Minister of Agriculture Aidarbek Saparov provided an update on this year’s harvest, projecting a total grain output of 24 million tons, slightly down from the 2023 record of 26.7 million tons. “This year’s harvest will fully meet domestic demand for food, fodder, and seed grain while maintaining our export commitments. Subsidies for transportation to seaports will continue to support the diversification of export destinations,” Saparov said. Kazakhstan exports between 8 and 9 million tons of grain annually, including 6.5 to 7.5 million tons of wheat, to over 40 countries. Between September 2024 and July 2025, total grain and flour exports, measured in grain equivalent, reached 12.4 million tons, marking a 34% year-on-year increase. In 2025, the total sowing area for grains and legumes reached 16 million hectares. By late September, 10.2 million hectares had been harvested, yielding 15.5 million tons with an average productivity of 15.2 quintals per hectare. As previously reported by The Times of Central Asia, Kazakhstan also aims to expand its annual grain exports to China to 2 million tons.

Cryptocurrency

Kazakhstan Sets Sights on Becoming Central Asia’s Blockchain Hub

Kazakhstan is accelerating its efforts to become a regional leader in blockchain and cryptocurrency. Among its latest initiatives is a proposal by the National Bank of Kazakhstan (NBK) to establish a state crypto reserve. National Strategy and Regulatory Evolution The NBK recently endorsed the idea of forming a national reserve of crypto assets. This was confirmed in an official response from NBK Chairman Timur Suleimenov to a parliamentary inquiry. The proposal includes creating the reserve through a subsidiary of the NBK focused on alternative investments. Mirroring practices in countries such as the United States, the reserve could be composed of confiscated crypto assets and cryptocurrencies mined with state involvement. Legislative amendments to support this move are expected. In January, President Kassym-Jomart Tokayev underscored the urgency of developing Kazakhstan’s crypto infrastructure, citing a global shift toward digital assets. Tokayev emphasized the need for a comprehensive national strategy to meet emerging challenges. Currently, legal cryptocurrency transactions in Kazakhstan can only occur via exchanges operating under the Astana International Financial Center (AIFC). Registered participants include major platforms such as Binance and Bybit. Expanding Infrastructure and Innovation The government is also considering the creation of crypto banks, which would regulate the digital asset market, facilitate storage and transactions, and boost the financial ecosystem. These institutions are seen as critical to fostering IT sector growth and blockchain compliance jobs. There are also plans to establish a licensed national cryptocurrency exchange that would operate nationwide beyond the AIFC. In May, Kazakhstan announced the launch of a special CryptoCity zone to pilot cryptocurrency-based payments for goods and services. The following month, five banks, Halyk Bank, Forte, Freedom, RBK, and Altyn, joined a NBK pilot program to introduce crypto cards. These cards, linked to wallets on AIFC-registered exchanges, allow for the real-time conversion of crypto into tenge for payments and cash withdrawals, including at physical retail terminals. Mining: Prospects and Pressure Kazakhstan has had a complex relationship with cryptocurrency mining. Between mid-2021 and early 2022, the country ranked third globally in Bitcoin mining, driven by low energy costs and an influx of miners from China. At its peak in January 2022, Kazakhstan accounted for 13.22% of global mining power. However, the surge in mining led to severe energy shortages. While enthusiasm for mining has returned, President Tokayev called in March 2025 for renewed investment in digital mining infrastructure. First Deputy Minister of Digital Development Kanysh Tuleushin has championed state-regulated mining as a potential revenue source and a catalyst for modernizing the energy grid. He pointed to models such as the U.S., where miners help balance grid loads, and to Kazakhstan’s “70/30” initiative, which allocates 30% of newly modernized thermal power plant capacity to miners and 70% to the national grid. Tuleushin also emphasized the potential for repurposing associated petroleum gas to generate mining power, thereby reducing emissions and monetizing a previously wasted resource. He argued that legalizing crypto activity nationwide could transform Kazakhstan into Central Asia’s crypto leader, on par with emerging markets in Uzbekistan and Kyrgyzstan. Energy...

Cryptocurrency

Kazakhstan’s Crypto Aspirations Face a Power Problem

Kazakhstan’s First Deputy Minister of Digital Development, Innovation, and Aerospace Industry, Kanysh Tuleushin, believes that state-regulated cryptocurrency mining could generate substantial revenue and help modernize the country's energy infrastructure. Tuleushin argues that Kazakhstan has the potential to become Central Asia’s leading blockchain hub. However, this vision clashes with the country’s ongoing energy crisis, which continues to impact households and businesses. Optimistic Vision In an article published in the state newspaper Kazakhstanskaya Pravda, Tuleushin outlined how mining operations could contribute to the development of Kazakhstan’s power generation capabilities. He emphasized the use of associated petroleum gas (APG) to produce electricity for mining, which he claims would reduce carbon emissions and boost oil sector profits. “Miners can help modernize the power grid. In the U.S., they participate in grid balancing by consuming excess energy during low-demand periods. Kazakhstan already has a ‘70⁄30’ initiative, where foreign investors upgrade thermal power plants, allocating 70% of new capacity to the general grid and 30% to miners,” Tuleushin wrote. Tuleushin reported that cryptocurrency mining has brought 17.7 billion tenge to the national budget over the past three years. Meanwhile, trading volume on the Astana International Financial Center (AIFC) exchanges increased from $324.2 million in 2023 to $1.4 billion in 2024. From January 1, 2025, miners will be required to sell 75% of their assets through the AIFC. Despite a generally cautious regulatory stance, Kazakhstan permits digital asset trading within the AIFC. Digital assets are categorized as secured (linked to physical assets) or unsecured (such as Bitcoin and Ethereum). In 2023, digital asset transactions in Kazakhstan reached $4.1 billion, but 91.5% occurred in the “gray zone,” beyond state oversight. In 2024 alone, the Financial Monitoring Agency shut down 36 illegal crypto exchanges, froze $4.8 million in assets, and blocked over 3,500 illicit platforms. Tuleushin argues that fully legalizing and regulating these operations could add more than 190 billion tenge annually to the budget, enough to fund major public infrastructure such as schools and hospitals. He proposes extending crypto trading beyond the AIFC, authorizing crypto ATMs, and opening the market to major players, an approach akin to that of the UAE. Tuleushin also claimed that regions like Pavlodar and Karaganda have electricity surpluses and that Kazakhstan's cold climate further lowers operational costs for miners. Unchecked Consumption and Mounting Strain Despite the deputy minister's optimism, Kazakhstan’s Supreme Audit Chamber (SAC) has raised alarms over uncontrolled energy consumption by miners. According to a 2024 audit, miners consumed 901 million kWh worth 13 billion tenge, despite a national energy shortage, by bypassing RFZ LLP, the country’s sole energy purchaser. Former Prime Minister and current head of the Supreme Audit Chamber, Alikhan Smailov, warned, “Miners are consuming up to a billion kilowatt-hours. This is damaging our economy. How can we allow unchecked consumption amid such a crisis?” The audit revealed systemic issues, including deteriorating Soviet-era power plants (55% average wear), a 4,500-worker shortfall in the energy sector, and a lack of financial oversight by the Ministry of Energy. Looming Crisis In January...

Finance

Binance to Assist Kyrgyzstan in Developing Blockchain Infrastructure and Crypto Assets

Kyrgyzstan’s National Investment Agency has signed a Memorandum of Cooperation with Changpeng Zhao, founder of Binance, the world’s largest cryptocurrency exchange by trading volume. According to the agency, Binance will assist Kyrgyzstan in several key areas, including the development of blockchain infrastructure and the creation of a national cryptocurrency reserve. The partnership will also focus on training young professionals, government employees, and specialists in blockchain technologies, virtual asset management, and cybersecurity. In addition, Binance will provide support in establishing a management system for virtual assets and blockchain technology in Kyrgyzstan source. While public interest in cryptocurrencies continues to grow in Kyrgyzstan, the market remains poorly regulated. Earlier this year, the Ministry of Economy and Commerce proposed legislation to create licensed crypto banks that would offer regulated banking services related to digital assets. The ministry stressed the need to integrate crypto assets into the national financial system, citing the rapid advancement of digital technology and the economic potential of legalizing cryptocurrency transactions. The introduction of crypto banks is expected to increase transaction volumes, boost tax revenues, and create new jobs in the fintech sector, positioning Kyrgyzstan as a regional hub for financial innovation. In a separate move to stabilize the sector, Kyrgyzstan’s Cabinet of Ministers significantly raised the minimum authorized capital required for crypto exchanges, from 100 million KGS to 10 billion KGS, a hundredfold increase. The Ministry of Economy and Commerce, which initiated the reform, stated that the measure is designed to ensure the financial stability of crypto platforms, safeguard user interests, and foster a transparent and secure virtual assets market. Existing exchanges have until January 1, 2026, to comply with the new capital requirements.