Kyrgyzstan plans crypto licensing platform and digital som pilot

Kyrgyzstan plans to overhaul parts of its virtual asset framework and begin testing a digital som as President Sadyr Japarov pushes ahead with the country’s blockchain strategy.

Speaking at the third meeting of the National Council on Virtual Assets and Blockchain Technologies on Sept. 5, Japarov described digital assets and blockchain as key areas of technological and economic transformation. He said the country’s growing market and interest from businesses and investors demonstrated the sector’s potential.

Japarov ordered the National Agency for Virtual Assets and Blockchain Technologies to coordinate government efforts, adopt a package of subordinate regulations within three months and prepare possible amendments to the virtual assets law and related legislation. The tax service was given two months to consider changes to the taxation of virtual asset activities.

The Kyrgyz authorities will also establish a unified digital platform for virtual asset licensing and supervision. The agency must determine its cost and financing within a month, with pilot testing expected to start from Jan. 1, 2027.

The National Bank was separately instructed to develop the digital som’s basic platform and complete initial pilot testing by the end of 2026. Real-world testing is to begin in 2027 before a phased national rollout. The meeting also covered the KGST stablecoin, international cooperation, market security, sanctions risks and workforce development.