COREDO > Cryptocurrency Licence in Kyrgyzstan

Cryptocurrency Licence in Kyrgyzstan

A cryptocurrency licence in Kyrgyzstan is an official authorisation to operate as a Virtual Asset Service Provider (VASP) within the territory of the Kyrgyz Republic. The licence is issued to companies engaged in the exchange, trading, and other operations with digital assets in accordance with national legislation.

COREDO has been operating in the legal and compliance services market since 2016 and provides full support for obtaining a cryptocurrency licence in Kyrgyzstan — from company registration to interaction with the regulator.

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Cost of the service
from 25 000 USD

Regulatory Framework

The activities of virtual asset service providers in Kyrgyzstan are regulated by the Law on Virtual Assets (Law of the Kyrgyz Republic No. 12), which was adopted by parliament on 22 December 2021, signed by the president on 21 January 2022, and entered into force in August 2022. The law defines virtual assets as independent objects of civil rights but explicitly states that they are not legal tender, currency, or securities in the Kyrgyz Republic.

Supervision of activities in the field of virtual assets is entrusted to the Financial Market Regulation and Supervision Service under the Ministry of Economy and Commerce of the Kyrgyz Republic (hereinafter referred to as the Service). This body carries out licensing, monitors compliance with legislative requirements, and oversees operations with virtual assets.

In January 2025, Government Decree No. 823 introduced stricter requirements for VASPs, including mandatory client identification, publication of trading rules, and enhanced transaction monitoring. In January 2026, the president signed an updated version of the Law on Virtual Assets, introducing the legal framework for the issuance of stablecoins, tokens backed by real-world assets (RWA), as well as the concepts of state mining and a state cryptocurrency reserve.

Types of Cryptocurrency Licences

Kyrgyz legislation provides for several types of licences for activities in the field of virtual assets.

Virtual asset trading operator licence

grants the right to organise and operate a trading platform for the purchase and sale of virtual assets, ensuring order matching and trade execution. This is the most capital-intensive type of licence, with a minimum share capital of 10 billion Kyrgyz soms (approximately USD 114,300,000). This requirement takes full effect from 1 January 2026 and is aimed at attracting major international players.

Virtual asset exchange operator licence

permits the exchange of virtual assets for fiat currency and vice versa, as well as the exchange of one virtual asset for another. The minimum share capital for this type of licence is 40 million Kyrgyz soms (approximately USD 460,000).

Mining operator licence

regulates the activity of mining virtual assets using computing power on the territory of Kyrgyzstan. The mining tax is 10% of the cost of electricity consumed.

In addition to the above licence types, the law regulates the public issuance and initial placement of virtual assets (ICO), which are also subject to approval by the Service.

Advantages of the Jurisdiction

Kyrgyzstan offers a number of significant advantages for cryptocurrency companies, driven by both the legislative framework and the country’s economic conditions.

Transparent and progressive regulation

distinguishes Kyrgyzstan among the countries of Central Asia. The Law on Virtual Assets created one of the most comprehensive legal frameworks in the region, providing legal certainty for market participants.

Competitive tax system

with a flat rate of 10% applies to all types of income, including profits from virtual asset operations. Kyrgyzstan does not differentiate the rate depending on the holding period of assets, which simplifies tax planning.

Low cost of doing business

compared to European and Asian jurisdictions. Expenses for office rent, labour, and infrastructure are significantly lower than in Singapore, Dubai, or EU countries.

Fast licensing process

the average time to obtain a licence is approximately one month from the submission of the complete document package, which is significantly faster than in most jurisdictions.

Active government support for the crypto industry

the Kyrgyz government appointed Binance founder Changpeng Zhao as an adviser to the national crypto council, signalling a strategic course towards developing the digital economy.

Growing ecosystem

the transaction volume of licensed VASPs grew from USD 59 million in 2022 to USD 4.2 billion in the first seven months of 2024, demonstrating dynamic market growth.

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Cost of COREDO Services

COREDO offers a comprehensive service package for obtaining a cryptocurrency licence in Kyrgyzstan starting from USD 25,000 + VAT. The package includes preparation of documents for company registration and incorporation in Kyrgyzstan, registration of the legal entity, preparation and submission of documents for obtaining a licence for virtual asset services, development of internal AML/CFT documentation in accordance with local legislation, preparation of legal documents for conducting business (standard client agreements, questionnaires, and other documents), as well as consultations on opening a bank account.

The final cost may vary depending on the type of licence requested, the complexity of the business model, and the scope of additional services.

Payment Terms

Payment for COREDO services for obtaining a cryptocurrency licence in Kyrgyzstan is made in stages. The first payment of 40% of the total cost is made as an advance payment before the commencement of preparatory work. The second payment of 40% is made before submitting the application to the regulatory authority. The final payment of 20% is made after the regulator issues its decision on the application.

This payment structure ensures a balance of interests between the client and the service provider, linking each payment stage to specific work deliverables.

Requirements for Licence Applicants

Companies planning to obtain a cryptocurrency licence in Kyrgyzstan must meet a number of requirements established by the Law on Virtual Assets and subordinate regulations.

Registration of a legal entity in the Kyrgyz Republic is mandatory

The company must be registered as a limited liability company (OsOO) or another legal form provided for by the legislation.

Local office is required

the company must lease office premises on the territory of Kyrgyzstan. Commercial real estate, including coworking centres, is permitted.

Opening a bank account in a Kyrgyz bank

the share capital must be deposited in an account at a local bank. The use of borrowed funds for share capital formation is not permitted.

Share capital formation

for a virtual asset exchange operator — at least 40 million KGS (approximately USD 460,000); for a virtual asset trading operator — at least 10 billion KGS (approximately USD 114,300,000).

Detailed three-year business plan

including a description of the business model, target audience, risk management, and financial projections.

Hosting of trading platform servers

on the territory of Kyrgyzstan with two-factor authentication and compliance with all regulatory information security requirements.

Internal control and protection system

the company must demonstrate the existence of a risk management system, technical and information protection measures, cybersecurity and business continuity provisions, as well as mechanisms for protecting consumer rights and their assets.

Appointment of a responsible AML/CFT officer

to oversee compliance with anti-money laundering and counter-terrorist financing legislation.

List of Documents

To apply for a cryptocurrency licence in Kyrgyzstan, the following document package must be prepared:

Incorporation documents of the company, including the charter and founding agreement of the OsOO, registered in the prescribed manner.

Information about the founders and ultimate beneficial owners: passport details, proof of residential address (statement not older than 3 months), proof of source of funds (bank statement for 3 months or tax declaration).

Criminal record certificates for the founders and directors of the company.

A business plan describing the planned activities, objectives, financial projections, and risk management strategy for three years.

A document confirming the full formation of the share capital.

A lease agreement for office premises on the territory of Kyrgyzstan.

Confirmation of a bank account opening at a local bank.

Technical documentation of the trading platform, including API documentation and information security certificates (ISO 27001).

Internal AML/CFT documentation: anti-money laundering policy, customer identification procedures (KYC), and transaction monitoring system.

CVs of the compliance officer and key company personnel.

An audit report by an accredited law firm (if required).

A completed licence application in the prescribed form.

Licence Acquisition Procedure

The process of obtaining a cryptocurrency licence in Kyrgyzstan involves several sequential stages.

Company registration and infrastructure preparation are carried out.

The company is registered in Kyrgyzstan, office premises are leased, a bank account is opened, and the share capital is deposited. Estimated timeframe: 2 weeks.

01

Documentation is prepared.

The complete document package is assembled, the business plan is developed, internal AML/CFT policies and platform technical documentation are prepared. Legal documents for conducting business are prepared in parallel. Estimated timeframe: 2–4 weeks.

02

The application is submitted to the Financial Market Regulation and Supervision Service.

The regulator checks the completeness of the documents, assesses compliance with legislative requirements, and requests additional information if necessary.

03

The regulator issues its decision on the licence.

The average application review period is approximately one month from the submission of the complete document package. In certain cases, the timeframe may be extended if additional information is requested.

04

The total timeframe for obtaining a licence, including preparatory work, is approximately 2–3 months.

AML/CFT Requirements and Travel Rule

Article 33 of the Law on Virtual Assets explicitly requires both miners and virtual asset service providers to take measures to counter terrorist financing and the legalisation of criminal proceeds, as well as to comply with the requirements of Kyrgyz legislation in the field of AML/CFT.

VASPs are required to conduct customer identification and verification (KYC), implement a transaction risk-scoring system, assess clients’ awareness before executing transactions, and report suspicious activities to the competent authorities.

Kyrgyzstan applies the Travel Rule: for transactions exceeding 85,000 KGS (~1,000 USD), VASPs must share sender and recipient data (names, account details, ID information). Transactions above 100,000 KGS are subject to mandatory notification to the financial supervisory authority.

Transactions with anonymous wallets are prohibited. All operations must be conducted through identified accounts.

COREDO provides a full range of services for the development of internal AML/CFT documentation, including anti-money laundering policy, KYC procedures, transaction monitoring systems, and reporting to the regulator.

Our Experts

The process of obtaining a cryptocurrency licence in Kyrgyzstan is supervised by COREDO’s team of experienced specialists.

Pavel Kos

Head of Legal. Has been with COREDO since 2017. Specialises in the licensing of financial and cryptocurrency companies, strategic planning, and regulatory process support across various jurisdictions.

Basang Ungunov

Lawyer. Specialises in the preparation of legal opinions, contract documentation, and licensing procedure support. Holds a Master of Laws degree (LLM) in civil law.

Frequently Asked Questions

What types of cryptocurrency licences are available in Kyrgyzstan?

Kyrgyz legislation provides for three types of licences: a virtual asset trading operator licence (crypto exchange), a virtual asset exchange operator licence (crypto exchanger), and a mining operator licence. Each licence type involves different share capital requirements and types of permitted activities.

What is the minimum share capital requirement?

For a virtual asset exchange operator, the minimum share capital is 40 million Kyrgyz soms (approximately USD 460,000). For a virtual asset trading operator (crypto exchange), 10 billion Kyrgyz soms (approximately USD 114,300,000) is required. The share capital is formed exclusively from shareholder contributions; the use of borrowed funds is not permitted.

How long does it take to obtain a licence?

The average licence processing time is approximately one month from the submission of the complete document package to the regulator. Including preparatory work (company registration, document preparation), the total timeframe is approximately 2–3 months.

Which authority issues the cryptocurrency licence in Kyrgyzstan?

Licensing and supervision of VASPs is carried out by the Financial Market Regulation and Supervision Service under the Ministry of Economy and Commerce of the Kyrgyz Republic (fsa.gov.kg).

What is the tax rate on cryptocurrency income?

Kyrgyzstan applies a flat income tax rate of 10% to all types of income, including profits from virtual asset operations. The rate does not depend on the asset holding period.

Is it mandatory to host servers in Kyrgyzstan?

Yes, the legislation requires that trading platform servers be located on the territory of Kyrgyzstan or under local control. The platform must provide two-factor authentication and comply with regulatory information security requirements.

What AML/CFT requirements apply to VASPs?

Virtual asset service providers are required to carry out client identification (KYC), conduct transaction monitoring, apply the Travel Rule for transactions exceeding 85,000 KGS (approximately USD 1,000), report suspicious transactions, and ensure that transactions with anonymous wallets are prohibited.

How much do COREDO's licence acquisition services cost?

The cost of COREDO’s comprehensive service package starts from USD 25,000 + VAT. The final amount depends on the type of licence and the complexity of the project.

Submit Application

COREDO has been providing full support for obtaining a cryptocurrency licence in Kyrgyzstan since 2016. Our specialists handle all stages of the process — from legal entity registration and document preparation to interaction with the regulator and licence acquisition.