Kyrgyzstan has a clear legal framework for virtual assets, governed by the Law on Virtual Assets (No. 12, 2022, amended 2025) and Cabinet of Ministers Decree No. 514 (2022, amended 2025). The financial regulator actively oversees the market and related financial sectors.
| Status | Legal |
| Risk Score | 25/100 (Low Risk) |
| Region | central asia |
| Currency | KGS |
| Capital Gains (Personal) | Taxed as ordinary income at the 10% flat personal income tax rate |
| Capital Gains (Corporate) | 10% profit tax |
| VAT on Crypto | No |
Gains from virtual assets are taxed under the general regime: 10% flat personal income tax and 10% corporate profit tax. The Tax Code defines realisation of a virtual asset as its exchange for national or foreign currency (crypto-to-crypto swaps are not a realisation). Miners pay a separate tax on electricity consumed; standard VAT is 12%.
| Required | Yes |
| Regulator | FSA (Financial Market Regulatory and Supervisory Service) |
| Framework | Law of the Kyrgyz Republic No. 12 of 21 January 2022 "On Virtual Assets" (amended 2022, 2023, 2025 and 2026) |
| Ease | medium |
| Cost (USD) | $5,000 - $20,000 |
Licensing is required for virtual asset service providers under the 2022 law and subsequent amendments.
No detailed enforcement information available
| Status | Research |
| Name | Digital Som |
| Issuing Authority | National Bank of the Kyrgyz Republic |
| Model | retail |
| Technology | DLT |
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | No |
| FATF Status | compliant |
| FATF Body | APG |
| Suspicious-Activity Reporting | Yes |
Status: Legal
DeFi activities are legal and operate under the general virtual asset regulatory framework.
Status: regulated
Stablecoins are regulated under the Law on Virtual Assets with specific provisions for issuance and use.
Status: unregulated
| Legal | Yes |
| Electricity Cost | $0.023/kWh |
| Renewable Energy | 78% |
| Infrastructure | fair |
Kyrgyzstan offers very low electricity costs and high renewable energy share, favorable for mining operations. Infrastructure is developing but still limited compared to major hubs.
| Stability | moderate |
| Sanctions | No |
| Corruption Index | 31/100 |
| Banking Access | moderate |
| Sanctions Program Active | No |
Risk Factors
Kyrgyzstan has moderate political stability with ongoing reforms. It is not under international sanctions. Corruption remains a challenge, and banking access for crypto firms is moderate due to cautious financial institutions.
Recent Political Events
Kyrgyzstan has a clear legal framework for virtual assets, governed by the Law on Virtual Assets (No. 12, 2022, amended 2025) and Cabinet of Ministers Decree No. 514 (2022, amended 2025). The financial regulator actively oversees the market and related financial sectors.
Kyrgyzstan is classified by FATF as: compliant.
Yes, licensing is required for VASPs.
KYC is mandatory for crypto businesses.
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Explore IT Services →Last reviewed: 2026-09-16 · Data source: Soken Crypto Legal Map
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