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      Kyrgyzstan Orders Liquidation of Gold-Backed Stablecoin Issuer and Crypto Exchange

      Kyrgyzstan has initiated the liquidation of two key components of its state-backed cryptocurrency initiative. On August 20, 2026, the country's Cabinet of Ministers issued Order No. 639-t, mandating the closure of OJSC EVA, the issuer of the gold-backed USDKG stablecoin, and OJSC Coin Nomad Exchange, the nation's first state-owned digital asset exchange. This decision follows sanctions imposed by the United Kingdom on May 26, 2026, against the original issuer of the stablecoin due to suspected economic ties with Russia.

      The liquidation process for Coin Nomad Exchange began after a shareholder vote on September 3, 2026, with creditors given until approximately October 14, 2026, to file claims. As of the liquidation announcement, around 50 million USDKG tokens were in circulation, trading close to $1 on various platforms. USDKG was designed to be pegged to the US dollar and backed by physical gold, with earlier verification indicating reserves of about 376 kg of gold, valued at approximately $50.3 million at that time.

      Kyrgyz officials have framed the liquidation as part of a broader strategy to enhance state asset management, without directly attributing the shutdown to the UK sanctions. The operational challenges faced by the issuer and the exchange have culminated in this significant restructuring, which began with the launch of USDKG in November 2025 and has now led to the dissolution of both entities.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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