Kyrgyzstan’s cryptocurrency sector has become a major contributor to state revenue, generating $22.8 million in tax income during 2025. This figure surpassed the tax revenue from the country’s iconic Dordoi Bazaar and patent-tax businesses. The government recently updated its regulatory framework to address the rapid growth of crypto transactions, which exceeded $20.5 billion last year.
The cryptocurrency sector in Kyrgyzstan contributed more to government tax revenue in 2025 than the country’s largest commodity exchange. Official statistics show crypto transaction volumes exceeded $20.5 billion last year, generating approximately $22.8 million in taxes.
This tax revenue was higher than the total from Bishkek’s Dordoi Market and enterprises under patent taxation schemes. Transaction volume reached $7.9 billion in the first three quarters of 2025 alone, driven by expanding exchanges, mining, and infrastructure.
Temir Kazybaev, chairman of the Association of Virtual Asset Market Participants in Kyrgyzstan, noted “the taxes on cryptocurrencies have exceeded the income generated by the conventional trading centers.” More than 200 cryptocurrency exchanges and 11 mining companies are now registered in the country.
In February, authorities updated regulations to provide clearer definitions for cryptocurrencies and stablecoins. President Sadyr Zhaparov signed laws permitting procedures for circulating domestically issued digital assets, including stablecoins backed by national reserves.
The country’s stablecoin activity, including the ruble-pegged A7A5 which processed over $100 billion in its first year, has drawn international regulatory scrutiny. Western regulators are probing possible sanctions evasion, having fined several regional banks and their affiliated crypto trading platforms.
Analysts state that clear regulations are imperative to sustain industry growth while avoiding sanctions. For investors, Kyrgyzstan demonstrates how emerging markets can leverage crypto for significant revenue while navigating complex regulatory and geopolitical landscapes.
