WuBlockchain
Kyrgyzstan has ordered the shutdown of USDKG, its $50 million state-backed gold stablecoin project, and the liquidation of issuer EVA and Coin Nomad Exchange, the country's first state-owned crypto exchange. USDKG launched in November 2025, pegged 1:1 to the U.S. dollar and backed by physical gold, primarily for cross-border payments.
Why it matters
The decision follows UK sanctions imposed on USDKG's issuer in May 2026 over alleged support for Russia. The case links a state-backed digital-asset project to sanctions exposure, a significant risk for initiatives designed to facilitate cross-border payments.
Market impact
The orders affect both the stablecoin project and the exchange established to operate in Kyrgyzstan's crypto market. The shutdown underscores how sanctions and regulatory action can bring state-backed digital-asset ventures to an end.
Source: [Кыргызстан ликвидирует государственный стейблкоин — bits.media](https://bits.media/kyrgyzstan-likvidiruet-gosudarstvennyy-steyblkoin/)
Frequently asked questions
-
What did Kyrgyzstan order to be shut down or liquidated?
The government ordered the shutdown of USDKG and the liquidation of its issuer, EVA, and Coin Nomad Exchange, the country's first state-owned crypto exchange.
-
How was USDKG structured?
USDKG was a $50 million state-backed stablecoin backed by physical gold and pegged 1:1 to the U.S. dollar.
-
What was USDKG designed to be used for?
The project was primarily intended to support cross-border payments.
-
Why was USDKG's issuer sanctioned by the UK?
The UK sanctioned EVA in May 2026 over alleged support for Russia.
-
When did USDKG launch?
USDKG launched in November 2025, several months before the UK sanctions against its issuer.
CoinTelegraph
CoinDesk
TheBlock
CryptoSlate
WatcherGuru