Crypto License in Kyrgyzstan

Crypto License in Kyrgyzstan – General Information  

The primary law is the Law of the Kyrgyz Republic “On Virtual Assets” (No. 12), which was adopted by Parliament on December 22, 2021, and signed into law on January 21, 2022. It officially entered into force in August 2022, six months after its publication. This law establishes the foundational licensing regime and serves as the main basis for the regulation of crypto assets and cryptocurrency activities under Kyrgyz law. This framework is further detailed by resolutions from the Cabinet of Ministers, such as Resolution No. 514 (“On issues of regulation of relations arising in the circulation of virtual assets”) from September 16, 2022.

Virtual assets are recognized as independent objects of civil rights but are explicitly not considered legal tender, currency, a means of payment, or a security within the Kyrgyz Republic. Cryptocurrency assets are regulated under Kyrgyz law, which sets out the licensing and compliance requirements for their use and circulation.

Governmental Authorities Involved:

• The Authorized Body is the primary regulator for most of the crypto sector. The Service for Regulation and Supervision of the Financial Market under the Ministry of Economy and Commerce has been identified as this authorized body. It is responsible for implementing policy, issuing VASP licenses, and supervising licensees.
• The Cabinet of Ministers holds significant power, including defining the authorized body, setting the minimum authorized capital for VASPs, and defining the procedures for the emission of virtual assets.
• The National Bank of the Kyrgyz Republic is responsible for supervising banks, non-bank financial-credit organizations, and other entities under its oversight if they choose to offer virtual asset services.
• Crypto-dedicated governmental body. While the “Service for Regulation and Supervision of the Financial Market” handles many financial sectors, it has a specific department for “Virtual Assets”. Furthermore, a high-level National Council for the Development of Virtual Assets and Blockchain Technologies has been established to guide national strategy.

The provided laws aim to foster the market, with state policy goals including the preparation of highly qualified personnel and conducting research in the sector. The current legal framework under Kyrgyz law permits a wide range of cryptocurrency activities, including exchange, custody, and other operations involving crypto assets and cryptocurrency assets, provided the necessary licensing is obtained. 

Kyrgyzstan shows an active and rapidly growing market, with reports of nearly $10 billion in crypto exchange volume in the first half of 2025. The government is actively partnering with major international players, such as Binance, and has appointed its founder, Changpeng Zhao, as an advisor to the national crypto council. This has led to initiatives like a national stablecoin (KGST) on the BNB Chain and the inclusion of BNB in the state’s new cryptocurrency reserve. While specific incubators are not named, there are local blockchain development agencies (Aunimeda, MAD DEVS GROUP LTD) and numerous crypto-exchange offices in cities like Bishkek.

Process and Timeline: Obtaining a Crypto license in Kyrgyzstan

The complete application process to obtain a crypto license in Kyrgyzstan takes approximately 2 to 3 months.

The process to obtain a VASP license involves these general steps:

• Company formation – The applicant must first be a legal entity registered in the territory of the Kyrgyz Republic;
• Form authorized capital – The company must form its minimum authorized capital. This capital must be formed in the national currency of the Kyrgyz Republic, in non-cash form, and only at the expense of the funds of the founders;
• Prepare documentation – The applicant must prepare a comprehensive package of documents (see below) that prove compliance with all licensing requirements;
• Application submission – The legal entity formally applies to the authorized body with the application and all supporting documents;
• Application review – The authorized body reviews the documents for compliance, which may involve consulting other state bodies;
• Receive decision – The authorized body makes a decision to issue a license or to refuse to issue a license.

The right to conduct activities begins from the moment the license is issued.

Other documents must prove compliance with the key license requirements from Article 29, including :

• Proof of a working platform located on servers in the territory of the Kyrgyz Republic;
• Copies of documents confirming the identity of the heads, founders and beneficial owners;
• The technical and economic feasibility study (business plan), key policies, regulations and procedures;
• Proof of an internal control system, technical, informational, and technological protection measures;
• The company’s rules and procedures governing data processing, consumer rights protection, business continuity and information security (cybersecurity);
• Proof of the formed minimum amount of authorized capital;.
• The law mandates that the VASP’s platform must be located on servers in the territory of the Kyrgyz Republic.

Types of licenses in Kyrgyzstan 

A legal entity that obtains this single license is then entitled to provide one or more of the specific VASP activities that are listed in Article 26 of the law. This license authorizes the holder to offer services related to crypto assets, in accordance with the regulatory framework established under Kyrgyzstan’s national law.

These activities include:

• Purchase and sale (exchange) of virtual assets;
• Exchange between virtual assets;
• Transfer of virtual assets;
• Storage, management, and control of virtual assets;
• Financial services related to the initial placement and/or sale of an issuer’s virtual assets.

Market overview: the crypto landscape in Kyrgyzstan

Kyrgyzstan’s crypto landscape is undergoing rapid transformation, positioning the country as a leading destination for digital innovation in Central Asia. Since the introduction of the Law “On Virtual Assets” in August 2022, the regulatory framework has provided much-needed clarity for virtual asset service providers (VASPs), enabling them to operate legally and securely. This legal certainty has been a catalyst for growth, attracting significant foreign investment and fostering the expansion of crypto exchanges, blockchain technologies, and a wide array of digital asset-related businesses.

The National Bank has played a pivotal role in shaping Kyrgyzstan’s approach to digital assets, ensuring that the regulatory framework aligns with international standards and best practices. By implementing robust measures to combat money laundering and terrorist financing, the government has created a secure environment for both local and foreign investors. The emphasis on an effective internal control system and strict compliance with established requirements has made Kyrgyzstan’s cryptocurrency market one of the most transparent and trustworthy in the region.

Kyrgyzstan’s business environment is particularly attractive to foreign investors and digital nomads. The country offers low corporate tax rates, a simplified tax regime, and no restrictions on foreign ownership of legal entities. The government’s proactive stance is further evidenced by the introduction of a digital nomad visa, which allows remote workers to live and conduct business operations in Kyrgyzstan for up to a year. This initiative, combined with the ease of company registration and the availability of necessary documents and identity documents, has made Kyrgyzstan a magnet for international entrepreneurs.

Collaboration between government agencies, regulatory bodies, and industry participants is another hallmark of Kyrgyzstan’s crypto ecosystem. The national council, comprising representatives from various government entities, oversees the development of the digital asset sector and works closely with virtual asset service providers, crypto exchanges, and other market participants. This cooperative approach ensures that the regulatory framework remains effective, adaptive, and conducive to innovation.

Importantly, cryptocurrencies and other digital assets are legally recognized in Kyrgyzstan, and companies can operate as fully compliant legal entities. The government has established a comprehensive suite of services to support the industry, including streamlined procedures for obtaining necessary documents, business plan approvals, and robust internal control systems to prevent illicit activities.

In summary, Kyrgyzstan’s crypto market is defined by regulatory clarity, innovative solutions, and a business-friendly environment. The country’s strategic vision (supported by the national bank, the national council, and a progressive legal framework) has positioned Kyrgyzstan as a regional leader in digital assets. As the market continues to evolve, Kyrgyzstan is set to remain a key player in Central Asia’s cryptocurrency landscape, offering unparalleled opportunities for virtual asset service providers, crypto exchanges, and foreign investors seeking a secure and dynamic environment for their business activities.