Crypto License in Kyrgyzstan

Kyrgyzstan is rapidly becoming a strategic destination for crypto entrepreneurs in the Eurasian region. With the enactment of the Law “On Virtual Assets” in August 2022, the country established one of the first comprehensive legal frameworks for virtual asset service providers (VASPs) in Central Asia.

Why Choose Kyrgyzstan for a Crypto License

The jurisdiction offers full legal clarity, predictable regulation, a business-friendly tax regime, and access to an emerging but fast-growing market. Licensed companies benefit from operational stability, cost-efficient structures, and a favorable environment for innovation in digital finance.

Political and Legal Stability

The Kyrgyz government actively supports fintech innovation while maintaining firm regulatory oversight. The crypto industry is regulated by the Service for Regulation and Supervision of the Financial Market, which ensures adherence to anti-money laundering (AML) and counter-terrorism financing (CFT) standards.

Foreign investors are welcomed, and the law permits 100% foreign ownership of Kyrgyz crypto companies. The regulatory authority works transparently and provides direct communication with applicants during the licensing process.

Kyrgyzstan cryptocurrency regulation

The Virtual Asset Exchange Operator (VAEO) license is the core license available under Kyrgyzstan crypto regulation. It permits the following services:

• Exchange of virtual assets for fiat currency
• Exchange of one virtual asset for another
• Transfer of virtual assets between users
• Financial services related to token issuance

These activities are legally recognized and can only be performed by licensed operators. Local hosting of the platform in Kyrgyzstan is mandatory.

Licensing Process for a Crypto Company in Kyrgyzstan

The licensing process is structured and time-bound, typically consisting of four stages:

1. Company Incorporation – A local entity is registered (about 1 week).
2. Document Preparation – Regulatory documents and compliance frameworks are developed (approx. 4 months).
3. Platform Hosting and Deployment – Setup and testing of the crypto platform on servers located in Kyrgyzstan (about 2 weeks).
4. Application Review by Regulator – The licensing authority reviews submitted materials, may request clarifications, and issues the license (1–2 months).

Total timeline: approximately 5 to 7 months.

Capital Requirements for Crypto License in Kyrgyzstan

To obtain a VAEO license, the applicant must meet the minimum share capital requirement of 40 million KGS, which is approximately EUR 460,000. These funds must be deposited in local currency, sourced from non-loan and non-credit funds.

This capital is required to demonstrate the financial stability of the applicant. After obtaining the license, the capital may be used for operational expenses, subject to regulatory conditions.

Requirements for Applicants Seeking a Crypto License in Kyrgyzstan

To obtain a license, companies must meet several conditions:

• Company Registration: A legal entity must be formed in Kyrgyzstan, with a physical office address.
• Personnel:
  • Director and Chief Accountant (may be non-residents)
  • Certified Compliance Officer (can be part-time or outsourced)
• Internal Policies: AML/CFT policy, internal controls, cybersecurity procedures, business continuity plan.
• Technical Infrastructure: Hosting of the platform within Kyrgyz territory.
• Advertising Rules: All marketing must be pre-approved by the regulator and must not promise profitability or mislead users.
• Document Submission: Personal documents (passport, diploma, criminal record), certified translations, proof of shareholding, and technical specifications.

All documentation must be in English or accompanied by certified translations.

Taxation of Cryptocurrency Companies in Kyrgyzstan

Kyrgyzstan offers a highly competitive tax environment for licensed crypto companies:

• Corporate Income Tax: 10%
• VAT (standard rate): 12%
• Dividends (to non-residents): 10% withholding tax
• Personal Income Tax: 10% flat rate
• Social Contributions: Approx. 19.25% total (pension, health, injury insurance)

Crypto-related revenues are treated as regular business income.

Crypto License in Kyrgyzstan