At a meeting of the National Council for the Development of Virtual Assets and Blockchain Technologies, held on Issyk-Kul, two landmark statements were made that defined the direction of Kyrgyzstan's digital economy development. Binance founder Changpeng Zhao and the country's president, Sadyr Japarov, speaking from a unified position, emphasized that the republic has come a long way and the key task now is not to slow the pace of reforms.
Changpeng Zhao: Soft regulation is the key to growth
Zhao, who received the status of public adviser to the president back in May 2025, focused on the need to maintain market momentum and create clear conditions for business. In his assessment, Kyrgyzstan's main advantage is the political will and openness of the authorities to dialogue with the technology sector. He warned against overly strict or unclear rules, which, in his words, could force innovative companies to migrate to more favorable jurisdictions.
"Regulation should not only limit risks but also create opportunities," the entrepreneur stated. He emphasized that order in the market must be transparent, technologically neutral, and clear. Zhao separately addressed the talent shortage: without training developers, lawyers, cybersecurity specialists, and financial analysts, the sector cannot grow. He expressed readiness to support educational initiatives in the republic.
Japarov: Strategic goal — a regional hub
President Japarov, for his part, outlined an ambitious task — to turn Kyrgyzstan into a regional hub for virtual assets and blockchain technologies. He called the development of these areas and new digital financial instruments one of the key elements of the country's technological and economic transformation. According to him, the republic is consistently moving in line with global trends, improving its legislative framework, and building the necessary infrastructure, which predetermined the creation of the National Agency for Virtual Assets.
Japarov also spoke about freedom of choice: every citizen has the right to decide for themselves whether to use traditional finance or virtual assets. The state's task is to ensure a clear, transparent, and safe environment for that choice.
The path to hub status: from stablecoin to bank cards
These statements are not declarations but a logical continuation of work already done. Back in May 2026, when Russia was only discussing a basic law on cryptocurrencies, Kyrgyzstan launched a state-backed stablecoin secured by gold, built its own gold storage facility for it, and granted Zhao citizenship.
According to industry experts, cryptocurrency is already being integrated into the country's banking system. The purchase of coins has been added to the mobile apps of approximately three banks, and next in line are legislative amendments allowing banks to act as custodians. Citizens actively use USDT for settlements with China, and crypto cards from several banks are being tested in the National Bank's sandbox. Tax revenues from crypto companies soared from 73 million soms in 2023 to 2.1 billion over 11 months of 2025.
However, the path to regional hub status is thorny. Issues remain unresolved regarding the ban on mining due to electricity shortages and the low crypto literacy of the population. Moreover, Kazakhstan, which is actively signing memorandums with Binance, is also competing for this role in Central Asia.
My analysis: Kyrgyzstan demonstrates a pragmatism rare for the post-Soviet space, using "soft" regulation as a competitive advantage. However, the bet on Zhao and the stablecoin is a long game, where the decisive factor will be not so much legislation as the ability to maintain the trust of international partners and investors amid global uncertainty.