The Cabinet of Ministers of Kyrgyzstan has increased the minimum authorized capital requirement for cryptocurrency exchanges from 100 million to 10 billion soms ($1.14 million to $114.3 million), according to local media reports.

The amendments were introduced in the resolution “On Regulation of Relations Arising from the Circulation of Virtual Assets” and signed by Prime Minister Adylbek Kasymaliev.

Registered exchanges in Kyrgyzstan must comply with the new capital requirements by January 1, 2026.

According to the authorities, the updated requirements will enhance financial stability and reliability of crypto exchanges, protect user interests, and create favorable conditions for the development of the virtual asset market.

“A significant statutory capital strengthens the liquidity of exchanges, enabling them to fulfill client obligations promptly and operate stably despite market fluctuations. Moreover, a large capital base serves as a financial buffer to cover potential losses from cyberattacks, technical failures, or other financial risks,” the explanatory note states.

During the public discussion phase, the Virtual Asset Market Participants Association criticized the measure, calling the capital increase “unjustified”, claiming it limits competition and hinders market development.

Earlier in March, the State Financial Intelligence Service under the Ministry of Finance of Kyrgyzstan dropped allegations against a group of crypto companies regarding their alleged involvement in money laundering.