Mongolia’s first cryptocurrency was ArdCoin, which was issued by Ard Financial Group in January 2019. ArdCoin offered Mongolians the opportunity to exchange ArdCoin for Mongolian tughrik, US dollars or other cryptocurrencies such as Bitcoin and Ethereum. Having a homegrown coin also affords Mongolians living abroad the opportunity to access their country’s financial markets. Some sources claim that as many as 500,000 people, or one in six Mongolians, own ArdCoin.

As of November 30, 2021, there were 12 cryptocurrency exchanges in Mongolia: DAX Crypto exchange, Coinhub exchange, Trade Exchange, Complex Exchange, Corex Exchange, Capex Exchange, National Crypto Exchange, Ebit Exchange, Stock Exchange, Retex Exchange, My coin Exchange and Coinsea Exchange. While the exchanges trade online, many of the companies that operate them have physical addresses in Ulaanbaatar.

While interest in cryptocurrency is growing in Mongolia, domestic coins have been problematic.  The high penetration of ArdCoin is in part due to the fact that at least 33 companies are offering ArdCoin as a bonus to their customers. These companies, who regularly purchase coins to issue to customers, are creating a market and giving the coin some liquidity. Lack of liquidity has been a key reason why international cryptocurrencies are preferred to domestic coins. Mistrust of Mongolian coins is another factor steering Mongolians toward international coins.

With coins such as Bitcoin losing as much as 50% of their value in 2022, the Mongolian government has been increasing the regulation of cryptocurrencies. In particular, Mongolian coins are coming under government scrutiny. Legislation regulating the cryptocurrency industry, known as the Law on Virtual Property Service Providers, came into force on December 14 last year.

At least 59 cryptocurrencies have been issued in Mongolia but 21 of the coins have been banned under the Virtual Investor Law.