Kyrgyzstan to Liquidate State Stablecoin USDKG

Kyrgyzstan is concluding the project of the state stablecoin USDKG. The cabinet's order dated August 20, 2026, was published on October 7. The stablecoin USDKG was launched in November 2025, with tokens pegged to the US dollar and backed by physical gold. The Ministry of Finance of Kyrgyzstan was the 100% shareholder of the company "Issuer of Virtual Assets," which issued the tokens. In May 2026, the UK imposed sanctions against the "Issuer of Virtual Assets," after which the company was renamed to "EVA." The liquidation of the company and the closure of the first state cryptocurrency exchange "Coin Nomad Exchange" are mentioned in the cabinet's decree. Holders of USDKG are advised to contact the project team to exchange tokens for fiat money or the USDT stablecoin from Tether. In early September, Kyrgyzstan's Minister of Economy and Commerce, Bakyt Sydykov, announced the liquidation of the company "ElPay," the issuer of the KGST stablecoin, created in partnership with Binance. The licenses of two virtual service providers were also revoked. These decisions were made in connection with increased control over the cryptocurrency market due to sanction risks.

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