Kyrgyzstan proposes putting crypto-market regulation and oversight under one state agency

Kyrgyzstan is considering putting licensing, regulation and supervision of the virtual-asset market under one state body. Farhat Iminov, head of the National Agency for Virtual Assets and Blockchain Technologies, raised the proposal at a meeting of the National Council.

The agency currently handles licensing and regulation, while Financial Supervision oversees market participants. Iminov said the split increases the administrative burden on businesses and creates a risk that state bodies will duplicate each other’s work. “It would be advisable to consider consolidating licensing, regulation and supervision within a single authorized state body,” he said.

The agency has prepared seven draft legal acts covering licensing for virtual-asset service providers, mining, the issuance of stablecoins and real-world-asset tokens, and the operation of a regulatory sandbox. During coordination of the documents, officials identified issues requiring legislative changes. These include the division of authority among state bodies, enforcement measures, decentralized platforms, foreign operators and compliance with Financial Action Task Force requirements.

Kyrgyzstan is also preparing a unified digital platform for licensing and supervision. Market participants would be able to submit applications remotely, obtain licenses, file reports and communicate with the government through the system. Officials plan to connect it to international blockchain-analysis tools for continuous transaction monitoring and risk reduction.

Iminov also said that Kyrgyzstan launched the som-backed KGST stablecoin at a one-to-one ratio after the previous National Council meeting. Work continues on a state crypto-reserve model and pilot projects to tokenize real-world assets.

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It would be advisable to consider consolidating licensing, regulation and supervision within a single authorized state body.