Virtual assets: concept and essence in the context of economic development of Kyrgyzstan

The article examines the evolution of the concept of "virtual assets," their economic essence and the institutional formation of the market in the Kyrgyz Republic. The purpose of this article is a comprehensive analysis of the concept and essence of virtual assets, as well as an assessment of the current state and prospects of their impact on the economy of the Kyrgyz Republic in the conditions of the formed institutional environment. Particular attention in the study is paid to the analysis of the legal framework, the structure of virtual asset service providers and the fiscal consequences of sector legalization. Based on the statistical data of the Financial Market Regulation and Supervision Service (Finnadzor) for 2022-2025, the main trends and structural imbalances of the national virtual asset market were identified. The results of the study made it possible to conclude about the transformation of the essence of virtual assets in the national economy: from a speculative instrument to the category of investment products backed by real assets, as well as about the critical dependence of the industry on state regulatory policy.