Cryptocurrency - 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.

Cryptocurrency

Turkmenistan Opens Door to Crypto Mining, Keeps Firm Grip on Exchanges

Turkmenistan has taken a rare step toward opening a tightly controlled economy by legalizing cryptocurrency mining and the operation of crypto exchanges under a new “Law on Virtual Assets”. First reported by The Times of Central Asia in early December 2025, the law came into effect on January 1, 2026, creating a state-run licensing system overseen by the Central Bank of Turkmenistan, while keeping strict limits on how crypto can be used inside the country. The legal change, signed by President Serdar Berdimuhamedov, brings “virtual assets” under civil law, meaning that crypto is treated as property, rather than money. Under the framework, cryptocurrencies are not recognized as legal tender and cannot be treated as a currency or security for domestic payments. As previously reported by The Times of Central Asia, the law covers the creation, storage, issuance, and circulation of virtual assets. It also states that the government is not responsible for losses incurred through crypto platforms or for drops in asset value. Mining rights are available to individual entrepreneurs and legal entities that register electronically with the central bank, and the law explicitly bans “hidden mining” that uses someone else’s computing resources without permission. For exchanges and related service providers, the licensing requirements are central. Licensed firms can offer exchange, transfer, storage, and management services, and conduct initial offerings, but they must follow customer identification rules aligned with anti-money-laundering controls. The law also places strict limits on who can operate crypto exchanges inside Turkmenistan. Individuals and legal entities registered in offshore jurisdictions are barred from establishing exchanges, and founders with offshore bank accounts are disqualified from obtaining licenses, reinforcing a framework designed to keep ownership and control within a tightly regulated domestic system. Advertising restrictions further underscore the government’s cautious approach. Crypto service providers are prohibited from making promises of profitability or offering inducements to attract customers. Promotional materials must include explicit warnings that virtual assets are not state-backed and may lose value, reflecting official concerns over speculation and consumer risk. The shift is widely seen as significant for one of the world’s most closed economies, though structural constraints remain. Turkmenistan’s heavily regulated internet environment poses a challenge for both trading platforms and large-scale exchange operations, particularly those requiring uninterrupted access to global networks. The move also fits within a broader effort to reduce reliance on gas exports by cautiously diversifying the economy. The commercial question now is whether legal clarity and access to low-cost electricity can outweigh these limitations. The model combines ultra-cheap energy with a license-driven regulatory system, a structure that may attract some miners while deterring firms that depend on flexible compliance regimes or unrestricted connectivity. Across Central Asia, governments have taken divergent approaches to regulating digital assets. Kazakhstan has experimented with special regulatory zones and later expanded oversight nationwide. Turkmenistan’s approach is more centralized, creating a narrow legal pathway that keeps regulatory authority concentrated with the state and the central bank. The government has signaled incremental openness in other areas, including the introduction of electronic...

Finance

Wallet in Telegram Launches in Uzbekistan, Expanding Crypto Access to Millions

Wallet in Telegram, a global digital asset service integrated directly into the Telegram messaging app, officially launched in Uzbekistan on December 9, opening up crypto access to more than 27 million local users. The move marks a major expansion of Telegram’s financial ecosystem and reinforces Uzbekistan’s role as a regional leader in regulated digital finance. The service allows users to buy, store, and transfer cryptocurrencies without needing to install additional applications. Registration takes only seconds, and transactions can be completed using local payment systems such as Humo, Visa, and Mastercard. Wallet currently supports Bitcoin, Toncoin, USDT, and over 200 other digital assets. According to the company, the goal is to make crypto transactions as seamless as sending a message, an especially relevant approach in Uzbekistan, where Telegram usage exceeds 88% of the internet-connected population. By embedding financial tools into an everyday platform, Wallet aims to normalize digital asset use and broaden access to global financial technologies. The technical infrastructure for Wallet’s Uzbekistan launch is provided by Asterium, the country’s largest crypto ecosystem and a key fintech player. Asterium is responsible for ensuring secure transactions, identity verification, and data protection. “Our mission at Asterium is to make working with crypto assets simple and accessible for everyone. Wallet in Telegram reflects our product philosophy: it is convenient, transparent, and secure, meaning it is genuinely useful for people,” said Komilhodja Sultonov, CEO of Asterium. The service was licensed by Uzbekistan’s National Agency for Perspective Projects (NAPP), the regulatory body overseeing the digital asset sector. Uzbekistan has developed one of Central Asia’s most comprehensive legal frameworks for crypto, with a strong focus on user protection and structured innovation. In response to questions from The Times of Central Asia, NAPP clarified how Wallet aligns with current regulations. Askarjon Zakirov, Head of the Crypto-Assets Turnover Sphere Development Department, emphasized that Uzbekistan legally distinguishes crypto assets from fiat currency. “Firstly, we say that a crypto asset is not a means of payment or a monetary equivalent,” he said. [caption id="attachment_40689" align="aligncenter" width="300"] @TCA/Sadokat Jalolova[/caption] Zakirov explained that crypto is treated as a form of property under Uzbek law. As such, transferring cryptocurrency is regarded as a transfer of property rights rather than a financial transaction with monetary obligations. Pavel Khristolubov, COO of Fintech and Web3 at Wallet in Telegram, also underscored the platform’s commitment to regulatory compliance. “It’s very important for us to operate within the framework of our license. This means we don't compete with local payment systems,” he said. Khristolubov added that Wallet users can choose between custodial services and non-custodial, on-chain options, offering varying degrees of freedom and security. Andrew Rogozov, CEO of The Open Platform (TOP), the technology company behind Wallet, described Uzbekistan as one of the world’s most dynamic digital markets. “By combining Telegram’s scale with regulatory clarity and high mobile adoption, we see Uzbekistan as a model for how emerging markets can leapfrog into convenient, technology-driven finance,” he said. Globally, Wallet in Telegram has over 150 million registered users. Its launch...

Crypto-mining

Tajikistan Introduces Prison Terms for Crypto Mining Using Stolen Electricity

Tajikistan has formally introduced criminal liability for the unauthorized use of electricity to mine cryptocurrency. On December 3 the country’s parliament approved amendments to the Criminal Code, adding Article 253(2): “Illegal use of electricity for the production of virtual assets.” Under the new law, violators face penalties ranging from fines of $1,650 to $8,250 or prison sentences of two to eight years, depending on the severity of the offense. The base-level offense, using stolen electricity for mining, carries a fine equivalent to $1,650 to $4,070. If committed by a group acting in coordination, penalties increase to $4,125-8,250 or two to five years' imprisonment. In cases involving organized groups and “particularly large-scale” electricity theft, offenders may face five to eight years in prison. Presenting the bill to parliament, Attorney General Khabibullo Vokhidzoda warned that unregulated mining has already contributed to regional power outages and an uptick in related crimes. “The illegal circulation of virtual assets contributes to a number of crimes, such as electricity theft, damage to state infrastructure, and the laundering of criminal proceeds,” Vokhidzoda said. He reported that damages from illegal mining operations have reached $3.52 million to date, with four to five criminal cases currently under investigation. Law enforcement officials have recorded cases of mining equipment being smuggled into the country and illegally connected to the national grid. Member of Parliament Shukhrat Ganizoda outlined the technical challenges posed by such operations. “A typical ASIC consumes up to 3.5 kWh, while more powerful models use 5–6 kWh. Large farms run thousands of these devices, placing an enormous strain on the electrical system,” he said. Ganizoda added that perpetrators often bypass meters or make illegal connections to reduce operating costs and maximize profits. The new legislation, he said, aims to deter tax evasion schemes, unauthorized data encryption, and attempts to circumvent commodity tracking systems. The law will take effect after it is signed by President Emomali Rahmon and officially published in state media. Tajikistan had already strengthened penalties for illegal electricity use and non-payment. Currently, such offenses are punishable by fines ranging from $2,970 to $9,900 or prison terms of three to ten years. The legislative crackdown comes amid the country's annual autumn-winter energy crisis. This year, electricity shortages are particularly severe, with some regions receiving just two to four hours of power per day. Authorities hope the new measures will ease pressure on the national grid and help prevent further outages.

Cryptocurrency

Kazakhstan to Establish National Register of Crypto Wallets Linked to Criminal Activity

Kazakhstan’s Financial Monitoring Agency (FMA) will create a national register of cryptocurrency wallets linked to criminal proceeds, according to Rashid Orazbek, Head of the agency’s operational analysis department. The announcement was made during a Senate session. Orazbek stated that the FMA is being granted new powers to maintain a centralized database of crypto wallets involved in illicit transactions and money laundering schemes. The system will enable authorities to apply advanced blockchain analytics, accelerate transaction risk assessments, and prioritize oversight of crypto-related activities. He added that the Financial Action Task Force (FATF) has recommended Kazakhstan implement licensing for cryptocurrency service providers. In response, new anti-money laundering (AML) regulations are being developed, and supervisory powers are being expanded to ensure compliance. A key requirement under the proposed framework is adherence to the “travel rule,” which mandates that crypto service providers identify both parties to a transaction and retain counterparty information. This data must be stored and made available to authorities upon request. Transactions lacking this information will be suspended, and failure to meet deadlines for disclosure will result in cancellation. The FMA expects these measures to substantially curb the criminal use of digital assets. Miras Zakiev, Deputy Chairman of the Committee on Digital Assets and Breakthrough Technologies, highlighted plans to integrate cryptocurrency into everyday financial operations. He said the "CryptoCity" initiative aims to create an ecosystem in which Kazakhstani citizens can pay for goods and services using cryptocurrency via bank terminals. According to Zakiev, the National Bank’s regulatory “sandbox” is currently testing the integration of crypto exchange tools and mechanisms developed by the Astana International Financial Centre into Kazakhstan’s banking infrastructure. At the same time, second-tier banks are upgrading their terminals to support crypto transactions. Zakiev also clarified Kazakhstan's mining regulations, noting that two categories of mining activities require licenses: data center owners and individuals or firms operating equipment housed in leased facilities. All miners must work through accredited domestic mining pools and are subject to corporate income tax, as well as capital gains tax for individuals. The digital asset sector has already generated significant fiscal returns. According to the State Revenue Committee, the industry contributed $14.8 million to the national budget in the first half of 2025. Zakiev said these figures reflect sustained positive momentum in the sector. Separately, Deputy Chairman of the National Bank Berik Sholpankulov told reporters that the government is exploring a potential investment of approximately $300 million in crypto assets. He described these instruments as comparable to securities and derivatives traded on global financial markets. If deemed profitable and viable, they may be included in Kazakhstan’s broader investment portfolio. Previously, The Times of Central Asia reported that the country is also considering converting part of the National Fund’s assets, as well as gold and foreign exchange reserves, into cryptocurrency.

Finance

Kazakhstan Weighs Converting Part of National Fund into Cryptocurrency

Kazakhstan’s monetary authorities are considering the possibility of converting a portion of the country’s National Fund assets and gold and foreign exchange reserves into cryptocurrency. The proposal was announced by Berik Sholpankulov, Deputy Chairman of the National Bank, during a session of the Mazhilis (lower house of parliament). “We are considering the possibility of using part of the National Fund’s assets and gold and foreign exchange reserves for investment in crypto assets,” Sholpankulov stated. He emphasized that any such operations would be conducted solely through a state-managed crypto asset fund, the creation of which is currently under government discussion. “First of all, confiscated crypto assets will be transferred to the state digital asset fund, where they will be stored as a strategic reserve of the government,” Sholpankulov explained. He added that the Ministry of Digital Development has proposed allowing state-owned mining enterprises to supply energy to private mining companies in exchange for payment in cryptocurrency. According to the National Bank, the assets of the National Fund rose by $990 million in September compared to August, reaching $62.7 billion. Gold and foreign exchange reserves increased by $3.1 billion to $57.4 billion. However, foreign exchange assets declined by $1.9 billion to $17.7 billion, while gold reserves grew by more than $5 billion, reaching $39.7 billion. Previously The Times of Central Asia reported that the National Bank had approved a concept for forming a national reserve of crypto assets. The reserve is expected to be managed through a new subsidiary focused on alternative investments. The government is also exploring the establishment of crypto banks and a licensed national cryptocurrency exchange to operate across Kazakhstan. As also previously reported by The Times of Central Asia, authorities have shut down 130 illegal cryptocurrency exchanges suspected of laundering criminal proceeds since the beginning of the year. Virtual assets worth $16.7 million were seized in connection with the crackdown. Sholpankulov previously noted that approximately $15 billion in cryptocurrency has left the country due to gaps in legislation governing digital assets.