In line with the government-supported mining business, Kyrgyzstan has taken a concrete step towards creating a state-owned cryptocurrency protected area, which is actually at the heart of Bitcoin.
Kyrgyzstan targets Bitcoin Reserves and provincial mining
On September 9th, Zhogorku Kenesh (Parliament) Committee on Budget, Economic and Fiscal Policy, Minister of Economic and Trade Bakyt Sydykov, said that the amendment to the “virtual assets” law would introduce the concepts of “state mining” and “state cryptocurrency reserves.”
He claimed it would be built through several channels, including “mining, mining real assets, issuing stupid and stupid things backed by national currency.”
The Minister fixed the discussion on sector size by hard numbers. From January to July 2025, sales across the enterprise operating in Kyrgyzstan’s crypto economy “beyond 1 trillion SOMs”, and tax revenues generated “900 million to 1 billion SOMs.” Currently, the official registry lists 169 crypto exchanges, 13 crypto exchanges and 11 mining companies, Sydykov said.
Energy security, and the assets that the state actually mined, controlled the commission exchange. MP Dastan Bekeshev said, “It takes about 800,000 kilowatts to mine one bitcoin. This is enough energy to run around 1,200 apartments a month. Winter is here. Is it worth the risk?”
In response, Sydykov said Kyrgyzstan would apply separate power tariffs to mining and the state would stick to them. He emphasized that mining farms are not in thermal power plants (TPPs) or under-constructed Kambal-ATA-1 hydro facility. “The main objectives of thermal and hydroelectric power plants, including Kambar-ATA-1 under construction, have nothing to do with mining. The capacity of small hydroelectric power plants is being used in the area. Of these, 17 are currently operating and another 15 projects are currently underway,” the minister said.
The same goes for the draft overhaul market. Sydykov said from January 1, 2026 that crypto exchanges that are attempting to operate domestically must hold at least 10 billion soms in certified capital.
Local media tracking the bill’s progress noted that “state mining” is defined as extraction of digital assets using state energy, infrastructure and technology resources, and will be set up not only from mining revenue but also from token issuance and acquisition of state-owned virtual assets.
The bill’s language consistently uses “cryptocurrency reserves,” but committee exchanges and risk framing are centered around Bitcoin. Bekeshev’s power generation comparison explicitly referenced the points of “one bitcoin” and BTC, the government’s preferred source of supply.
Kyrgyzstan races Kazakhstan with a central Asian crypto push
That actual emphasis is also consistent with previous policy signaling. In mid-April, Kyrgyzstan’s National Investment Agency signed a strategic memorandum with Binance co-founder Changpeng Zhao, and formally appointed him as an advisor to national blockchain policy and Web3 strategy. In early May, during a visit to Bishkek, Zhao publicly proposed that the country use Bitcoin (BNB) as the first asset of the National Cryptocurrency.
Push occurs as Kyrgyzstan’s crypto sector has become both a budget contributor and a geopolitical flashpoint. The surge in domestic platform activity coincided with scrutiny of Western sanctions, including UK and US measures in August. Entities related to the Louvre Peg’s Stubcoin Network and Kyrgyzstan companies allegedly assisted in avoiding sanctions in Russia, allegedly urged President Sadirjaparo to publicly appeal to Washington and London. The government has rejected fraud claims and emphasized that crypto-related banking operations are under state surveillance.
Regional contexts are shifting in parallel. Nearby Kazakhstan proposed to create a national “crypto reserve fund” by 2026, part of the national blueprint, part of the broader digital asset agenda, including pilots’ “crypto” and new laws.
Analyst Daniel Batten highlighted the key differences from other Bitcoin-favorable states, saying, “Unlike El Salvador, Pakistan, Argentina, cars and Kazakhstan, there are no IMF loans. Therefore, this order may not be hindered.” If Astana proceeds, it will build a formal digital asset buffer for the sovereignty of the second Central Asia, strengthening the dynamics of regulation and competitiveness in the region.
At the time of pressing, Bitcoin was traded for $112,684.
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