Kyrgyzstan liquidates USDKG stablecoin issuer and state crypto exchange

The government of Kyrgyzstan has ordered the liquidation of EVA, the issuer of the gold-backed stablecoin USDKG, and the closure of Coin Nomad Exchange, the nation’s first state-owned cryptocurrency exchange. The decision follows United Kingdom sanctions imposed on the issuer in May over alleged business activities of economic importance to the Russian government.

USDKG launched in November 2025 as a state-backed project with approximately 50 million tokens pegged 1:1 to the US dollar. As part of the wind-down process, the project intends to consolidate all tokens into single wallets on the Tron and Ethereum networks before transferring them to burn addresses.

Official government reasoning for the liquidation cites the “optimization of state participation in companies and increasing the efficiency of state asset management.” USDKG holders are permitted to exchange their tokens for fiat currency or USDT before smart contracts are suspended and the asset is removed from exchanges.