Kyrgyzstan liquidation of USDKG and state crypto exchange

The Kyrgyz government has ordered the liquidation of OJSC EVA, the issuer of the gold-backed stablecoin USDKG, and the state-owned digital-asset exchange, OJSC Coin Nomad Exchange. The Cabinet of Ministers stated the move is intended to facilitate the “optimization of state participation in companies and increasing the efficiency of state asset management.”

Launched in November 2025 to assist with cross-border payments, USDKG was pegged 1:1 to the US dollar and backed by approximately 376 kg of physical gold, valued at roughly $50.3 million. At the time of the announcement, approximately 50 million tokens were in circulation.

The liquidation follows United Kingdom sanctions imposed in May 2026 on the stablecoin’s original issuer due to alleged business activities of economic importance to the Russian government, though Kyrgyz officials have not explicitly cited these sanctions as the reason for the decision.

As part of the wind-down, USDKG holders are permitted to exchange tokens for fiat currency or USDT. Coin Nomad Exchange has entered voluntary liquidation following a shareholder vote, with creditors required to file claims by mid-October 2026.