BAKU, Azerbaijan, August 1. Kyrgyzstan has
designated the State Service for Regulation and Supervision of the
Financial Market under the Ministry of Economy as the regulator of
the virtual asset sector.
The decision was approved by a government resolution signed by
Chairman of the Cabinet of Ministers Adylbek Kasymaliev on July 30,
2026.
Under the new framework, the regulator will be responsible for
supervising participants in the cryptocurrency market, including
licensing, inspections and ongoing monitoring of virtual asset
service providers. The expanded mandate includes oversight of
virtual asset exchange platforms, monitoring of mining pools and
assessment of cryptocurrency mining capacity.
"The regulator will also introduce tools for analyzing
blockchain transactions as part of efforts to strengthen market
supervision," the resolution notes.
In addition, the authority will examine the ownership
structures, beneficial owners and business reputations of
candidates for senior positions in cryptocurrency companies. The
new rules also strengthen measures aimed at preventing money
laundering and terrorist financing in the virtual asset sector.
Companies classified as high-risk may face enhanced monitoring
procedures.
The regulator has also been granted powers to take enforcement
measures in cases of violations, including suspending operations,
restricting asset transfers and suspending or revoking licenses of
market participants. The government resolution entered into force
upon publication, with its provisions applying to legal relations
arising from June 9, 2026.
