Kyrgyzstan has a relatively small internal market volume and population. However, this jurisdiction has a growing fintech and crypto market. Recently, it has implemented crypto regulation and licensing procedures. The cost and complexity of starting a company in this jurisdiction are small.
Country overview
#90
KyrgyzstanCountry stats
Rating Points
160
This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.
Crypto Penetration
1.7%
Estimated percentage of crypto users out of the country's total population based on public data.
Legal Entities
Empty
Number of crypto companies registered in the country based on regulator data if available or other types of public data.
Regulation Points
120
An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.
Amount of crypto users
112 200
Total amount of crypto users out of the country's total population based on public data.
Taxation points
37
This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.
Market volume points
62.8
A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.
Status of crypto
Legally allowed
General status of cryptocurrency regulation in this jurisdiction.
Crypto payments
Ban
The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.
Security Level
Considerable danger
The overall level of security in a given country based on open data.
Crypto Salaries
No info
The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.
Business Climate
Difficult
Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.
Stablecoin Regulation
None
This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.
Bad Factors
No
This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.
Types of licenses
Crypto-to-crypto
This license type allows VASP to provide legal exchange from one cryptocurrency to another.
Crypto-to-fiat
This type of license regulates the exchange from cryptocurrency to fiat.
Wallet/Custody
This country has a legal licensing procedure for companies that store cryptocurrency - - crypto wallet providers and custodians.
Cryptofund
This indicator means that investment funds, trusts, and crypto funds can get regulator approval to provide their activity in the country.
ICO/STO
This indicator describes legal procedures for token sales and security token issuance. This country has a clear regulation framework and licensing procedures for entities that provide this activity.
Mining
This field indicates jurisdictions where mining requires a special license.
Good
Medium
Bad
According to our rating, Kyrgyzstan has a considerable danger security level. The jurisdiction has 46.1 points (from 100) for safety level in Numbeo crime rating (1). The level of firearm-related death (2) is 0.72 per 100,000 inhabitants a year.
According to current legislation, the only means of payment in the Kyrgyz Republic is(3) the national currency - Som. Crypto payments are officially banned.
We need to find out about regulating cryptocurrency salary payments in Kyrgyzstan's current legislation. Since crypto payments are formally prohibited in the country, they are also illegal.
Kyrgyzstan has implemented the 2022 Law On Virtual Assets(4). This legal act regulates (5) mining, crypto exchange, and issuance of virtual assets. The law also includes a basic description of licensing procedures.
Also, by the new legislation, investment funds operating (6) in Kyrgyzstan can have crypto assets in their portfolio, but this share should not exceed 20% of net assets.
The procedure for providing VA services is described in document (7), published by the National Bank of Kyrgyzstan.
There is a VASP register(7¹), but no legal entities are yet.
| Tax name | Index |
| PIT tax Min | 10 |
| PIT tax Max | 10 |
| Corporate tax (CIT) | 10 |
| Min Individual CGT (for crypto) | 10 |
| Max Individual CGT (for crypto) | 10 |
| Wealth tax Min | 0 |
| Wealth tax Max | 0 |
| Mining tax | 15 |
PIT
A flat rate of 10% applies to most types of individual income by PWC(8).
CIT
The Headline CIT rate is 10%, according to PWC(9).
CGT
Capital gains are subject(10) to the PIT with a flat rate (10%)
Mining tax
Companies and individual entrepreneurs engaged in crypto mining should pay 15% tax on crypto mining based on PWC(11).
1)Crime Index by Country 2023 Mid-Year
2)List of countries by firearm-related death rate
3)Cabar. The use of cryptocurrencies is illegal in Kyrgyzstan, National Bank. Article
4)LAW OF THE KYRGYZ REPUBLIC dated January 21, 2022, No. 12, About virtual assets. Law
5)Cabar. Kyrgyzstan Introduces Regulation of Cryptocurrency Market. Article
6)Economist. The operating procedure for crypto exchanges and miners has been approved in Kyrgyzstan. Article
7)Кыргыз Банкы. ORDER provision of services related to virtual assets. Law
8)Kyrgyzstan. Individual - Taxes on personal income. PWC
9 and 10) Kyrgyzstan. Overview. PWC
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