Kyrgyzstan is taking an active role in the crypto ecosystem, highlighted by the achievement of a total volume of crypto asset transactions amounting to $7 billion, as announced by the head of the National Investment Agency during a meeting with an American ambassador.
Discussions on crypto economy with the U.S.
During a recent meeting between Farkhat Iminov, Director of the National Investment Agency of Kyrgyzstan, and U.S. Ambassador Lesslie Viguerie, significant focus was placed on the digital economy and the cryptocurrency market. Iminov noted that the country regulated its crypto sector in 2022 with the adoption of the 'On Virtual Assets' law.
Kyrgyzstan's position in the crypto sphere
Iminov highlighted that by the end of 2024, the registered turnover of crypto in the country reached $7 billion. Kyrgyzstan is seen as a leader in Central Asia regarding blockchain technology development and cryptocurrency mining. The U.S. ambassador applauded the introduction of the digital som, a central bank digital currency issued by the National Bank of Kyrgyzstan, describing it as an innovative step.
Use of Kyrgyzstan to evade sanctions
The formal statements during the meeting did not reveal whether Iminov and Viguerie discussed the allegations that Russia has been using Kyrgyz crypto platforms to circumvent international sanctions. An investigation by TRM Labs indicated a growing pattern of Russian actors exploiting the country for sanctions evasion.
Overall, Kyrgyzstan's position in the crypto industry highlights its growing international significance, although questions about its potential role in sanction evasion remain pertinent.
