President of Kyrgyzstan Sadyr Japarov signed the Law «On Amendments to the Law of the Kyrgyz Republic On Virtual Assets,’» the presidential press service reported.
The amendments are aimed at increasing the effectiveness of state regulation in the virtual asset sector and ensuring the stability and transparency of the crypto market in Kyrgyzstan.
The law clarifies the definition of «stablecoin» and introduces new definitions, including «token backed by a real asset (real world asset token — RWA token),» «state cryptocurrency mining,» and «state cryptocurrency reserve.»
The document provides for the possibility of implementing pilot regulations in the virtual asset sector. For this purpose, the President will be able to establish a special regulatory regime—a so-called regulatory sandbox—in certain territories for a specified period to test innovative services and technologies.
Furthermore, the authorized state body is granted the right to license and issue permits within the special regime. Such licenses will be issued for a limited period, will be personalized, and will not be transferable to third parties.
To obtain a license to operate as a virtual asset service provider, legal entities should submit an application to the authorized body.
The law also stipulates that individuals engaged in crypto mining must undergo state registration. Individual entrepreneurs and legal entities are authorized to conduct crypto mining upon receipt of the relevant certificate.
