Photo: World Bank

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.