Kyrgyzstan has made a real step toward building a state-owned reserve of crypto assets, mostly Bitcoin, coupled with government-backed mining companies.

Kyrgyzstan Sets Its Sights on Bitcoin Reserves and State Mining
Minister of Economy and Trade Bakyt Sydykov told the Zhogorku Kenesh (parliament) Committee on Budget, Economic, and Fiscal Policy on September 9 that proposed changes to the Law "On Virtual Assets" would include the ideas of "state mining" and a "state cryptocurrency reserve."

He said that the reserve will be developed in a number of ways, including as "mining, tokenizing real assets, and issuing stablecoins backed by the national currency." He also said that this would "strengthen the country's financial stability and provide new ways to save."

The minister used actual data to show how big the industry is. From January to July 2025, enterprises in Kyrgyzstan's crypto economy made more over 1 trillion soms in sales, which brought in 900 million to 1 billion soms in taxes. Sydykov added that official records currently show 169 crypto exchangers, 13 crypto exchanges, and 11 mining companies.

The committee's main topic of discussion was energy security and what asset the state would really mine. Dastan Bekeshev, a member of parliament, said that "about 800 thousand kilowatts are needed to mine one bitcoin." This much energy can power nearly 1,200 apartments for a month. "Winter is coming—should I take the chance?"

Sydykov said that Kyrgyzstan had different electricity rates for mining and that the government will stick to them. He made it clear that there will be no mining farms at thermal power plants (TPPs) or at the Kambar-Ata-1 hydro project that is still being built. "The fundamental objective of thermal power plants and hydroelectric power plants, like the Kambar-Ata-1 that is being built, has nothing to do with mining. "The capacity of small hydroelectric power plants is used for this area: 17 of them are currently operating, and another 15 projects are under implementation," the minister stated.

The document also changes the regulations for the market. Sydykov added that starting on January 1, 2026, every crypto exchange that wants to conduct business in the nation must have at least 10 billion soms in approved capital. The government calls this a "prudential bar" that is meant to "strengthen confidence in the market and develop the crypto industry in the country."

Local news sources that are following the bill's progress say that "state mining" means using state energy, infrastructure, and technology to mine digital assets. The reserve will come not only from mining profits but also from issuing tokens and buying virtual assets that the state already owns.

Related Reading: Is Tether Selling Off Its Huge Bitcoin Holdings? The CEO tells the truth
The measure always used the term "cryptocurrency reserve," although the committee's discussion of exchange and risk was mostly on Bitcoin. In Bekeshev's power-use comparison, he clearly said "one bitcoin," and the government's favored supply source, mining, pointing to BTC first.

Kyrgyzstan is racing against Kazakhstan. In Central Asia's push for crypto
That focus on practicality is also in line with past policy messaging. In the middle of April, Kyrgyzstan's National Investment Agency inked a strategic pact with Changpeng Zhao, the co-founder of Binance. This made Zhao an official counselor on national blockchain policy and Web3 strategy. In early May, Zhao officially urged that the government utilize Bitcoin and BNB as the first assets for a national crypto reserve during a visit to Bishkek.

The drive comes at a time when Kyrgyzstan's crypto industry is both a source of income for the government and a point of conflict in the world. The rise in activity on domestic platforms has happened at the same time as Western sanctions scrutiny, such as British and US measures in August that targeted companies linked to a rouble-pegged stablecoin network and Kyrgyz firms that were said to have helped Russia avoid sanctions. This pressure led President Sadyr Japarov to publicly ask Washington and London for help. The administration has denied charges of impropriety and stressed that the state is in charge of all banking activities relating to cryptocurrencies.

At the same time, the regional situation is changing. Kazakhstan, which lies next door, has lately suggested creating a national "crypto reserve fund" as part of its State of the Nation plan. This is part of a larger digital-assets agenda that includes a pilot "CryptoCity" and new laws by 2026.

Daniel Batten, an analyst, pointed out a big difference between Kazakhstan and other countries who are interested in Bitcoin. He said on X, "Unlike El Salvador, Pakistan, Argentina, CAR, and Kazakhstan, Kazakhstan does not have an IMF loan, so this order is likely to go through without any problems." If Astana goes through with it, it would be the second Central Asian country to construct a legal digital-asset buffer. This would make the region's regulatory and competitive situations even more complicated.

#BNBBreaksATH #bitcoin #AltcoinMarketRecovery $BTC $ETH $XRP