TLDR
- Kyrgyzstan’s crypto market generated over $22 million in taxes in 2025, surpassing the Dordoi market’s tax revenue.
- The crypto industry’s turnover exceeded $7.9 billion in the first three quarters of 2025.
- The country’s crypto market now contributes more in taxes than all patent system entrepreneurs combined.
- Over 200 crypto exchanges and 11 mining companies are now registered in Kyrgyzstan.
- Kyrgyzstan’s new stablecoins, including USDKG and KGST, are gaining traction and fueling the market’s growth.
- International concerns over the use of Kyrgyzstan-based stablecoins to bypass sanctions have intensified.
Kyrgyzstan’s cryptocurrency market has grown significantly, contributing more in taxes than the country’s largest trading hub, the Dordoi market. According to recent figures, the crypto sector has surpassed even the combined tax revenues from all entrepreneurs working under the patent system. These developments come amid growing discussions about updating the country’s crypto regulations and addressing international concerns regarding potential sanctions circumvention.
Crypto Market’s Tax Contribution Exceeds Dordoi Market’s
In 2025, Kyrgyzstan’s crypto industry generated $22.8 million in tax revenue, a figure higher than the $7.9 million collected from the Dordoi market. The Dordoi market, located in Bishkek, is the largest in Kyrgyzstan and one of the biggest in Asia. Despite its size, the market’s tax revenue pales in comparison to that of the crypto sector, highlighting the growing influence of virtual assets in the country’s economy.
The country’s crypto market turnover exceeded $7.9 billion in the first three quarters of 2025. This figure is expected to rise as the industry continues to expand. Temir Kazybaev, head of the Association of Virtual Asset Market Participants, highlighted that the crypto market already contributes more in taxes than the country’s largest market and all patent system workers combined. “The crypto industry is no longer viewed as a scheme; it is seen as a legitimate opportunity,” Kazybaev said in an interview.
Growing Infrastructure in Kyrgyzstan Crypto Industry
The infrastructure supporting Kyrgyzstan’s crypto market is rapidly expanding. The country is home to over 200 registered crypto exchanges and 11 mining companies. This growth is fueled by government support, including the launch of a gold-backed stablecoin, USDKG, which has gained traction within the nation.
Kazybaev also emphasized the importance of President Sadyr Japarov’s backing of the crypto industry. The government’s efforts have made Kyrgyzstan a hub for digital assets in Central Asia. The country is also home to the A7A5 stablecoin, which is pegged to the ruble and has processed over $100 billion in transactions since the beginning of 2025.
Increased Scrutiny Amid Sanctions Concerns
Despite the sector’s growth, international scrutiny over Kyrgyzstan’s role in the crypto market has intensified. The launch of stablecoins like USDKG and KGST has raised concerns about their use in bypassing sanctions. The A7A5 stablecoin, developed by a Russian team and registered in Kyrgyzstan, has particularly attracted attention due to its ties to Russia.
Several Kyrgyz banks and crypto platforms have faced restrictions from the European Union, the United States, and the United Kingdom due to these concerns. As Kyrgyzstan moves forward with new regulations, the crypto sector remains under close international scrutiny. In February, new documents were introduced to define the role of stablecoins and the state’s involvement in mining, marking a shift towards stricter oversight of digital assets in the country.
