Kyrgyzstan Aims for a State Bitcoin Reserve with a National Mining Plan | Bitcoinist.com

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Kyrgyzstan has taken a concrete step towards the creation of a state reserve of crypto assets—practically centered on Bitcoin—along with government-supported mining operations.

Kyrgyzstan Looks to a Bitcoin Reserve and State Mining

During a hearing on September 9 at the Budget, Economic and Fiscal Policy Committee of the Zhogorku Kenesh (parliament), Minister of Economy and Trade Bakyt Sydykov stated that the draft amendments to the law “On Virtual Assets” will introduce the concepts of “state mining” and “state cryptocurrency reserve.”

He explained that the reserve will be built through various channels—“mining, tokenization of real assets, and issuance of stablecoins backed by the national currency”—and that the mechanism will serve to “strengthen the financial stability of the country and provide new accumulation tools.”

The minister provided concrete data on the sector. From January to July 2025, the revenue of companies operating in the crypto economy of Kyrgyzstan “exceeded 1 trillion som”, generating “900 million–1 billion som” in tax revenues. Official records now indicate 169 13 exchanges and 11 mining companies, said Sydykov.

Energy security has dominated the debate in committee. Deputy Dastan Bekeshev warned that “it takes about 800,000 kilowatts to mine one bitcoin. That's enough energy to power about 1,200 apartments for a month. Winter is coming— is it worth it?”

In response, Sydykov stated that Kyrgyzstan applies separate electricity tariffs for mining and that the state will adhere to them. He emphasized that no mining farm will be located near thermal power plants or the Kambar-Ata-1 hydroelectric plant under construction. “The main purpose of thermal and hydroelectric power plants, including the Kambar-Ata-1 under construction, is not related to mining. The capacity of small hydropower plants is utilized in this area: 17 are currently operational and another 15 projects are underway,” the minister stated.

The draft also reformulates market rules. Sydykov stated that starting from January 1, 2026, any cryptocurrency exchange wishing to operate nationally must have at least 10 billion som in authorized capital—a prudential threshold that the government deems necessary to “strengthen confidence in the market and develop the crypto industry in the country.”

Local media following the legislative process emphasize that “state mining” is defined as the extraction of digital assets using state energy, infrastructure, and technological resources, with the caveat that it will be formed not only from the proceeds of mining but also from the issuance of tokens and the acquisition of virtual assets owned by the state.

Although the language of the law constantly uses “cryptocurrency reserve”, the committee debate and the risk framework have focused on Bitcoin. Bekeshev's comparison of energy consumption explicitly referred to “one bitcoin”, and the government's preferred source—mining—clearly indicates BTC as the main asset.

Kyrgyzstan Races Against Kazakhstan in Central Asia's Crypto Push

This practical approach is also in line with previous policy signals. In mid-April, the National Investment Agency of Kyrgyzstan signed a strategic memorandum with Changpeng Zhao, co-founder of Binance, formally appointing him as an advisor on national blockchain policy and Web3 strategy. In early May, during a visit to Bishkek, Zhao publicly suggested that the country use Bitcoin—along with BNB—as initial assets for a national cryptocurrency reserve.

The push comes as the crypto sector in Kyrgyzstan has become central from an economic and geopolitical standpoint. The increase in activity on local platforms coincided with the enforcement of Western sanctions, including British and U.S. measures in August against entities related to a network of stablecoins pegged to the ruble and Kyrgyz companies accused of facilitating the evasion of Russian sanctions—pressures that have led President Sadyr Japarov to publicly address Washington and London. The government has dismissed the accusations and emphasized that banking operations related to crypto are under state supervision.

The regional context is moving in parallel. Neighboring Kazakhstan has just proposed the creation of a national “crypto reserve fund” as part of the “State of the Nation” plan, part of a broader agenda on digital assets that includes a “CryptoCity” pilot project and new legislation by 2026.

Analyst Daniel Batten highlighted a key difference compared to other countries interested in Bitcoin, noting on X that “Unlike El Salvador, Pakistan, Argentina, and CAR, Kazakhstan does not have an IMF loan—so this initiative will likely proceed without obstacles.” If Astana proceeds, it will be the second country in Central Asia to formally build a digital asset buffer, intensifying regulatory and competitive dynamics in the region.

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