Kyrgyzstan is liquidating two key components of its state-backed cryptocurrency infrastructure. On August 20, 2026, the country's Cabinet of Ministers issued Order No. 639-t, directing the shutdown of OJSC EVA, the issuer of the USDKG stablecoin, and OJSC Coin Nomad Exchange, the nation's first state-owned digital-asset exchange.
The liquidation follows UK sanctions imposed on May 26, 2026, against Virtual Asset Issuer, the original issuer of USDKG, citing suspected economic ties with Russia. Kyrgyz officials have not publicly attributed the shutdown to the sanctions, instead characterizing the liquidation as part of broader efforts to improve state asset management.
USDKG launched in November 2025 as a dollar-pegged stablecoin backed by physical gold. Approximately 50 million USDKG tokens were in circulation at the time of the liquidation announcement, trading near $1 across various platforms.
Kreston Global verified the gold reserves backing USDKG at approximately 376 kg, valued at roughly $50.3 million at the time of verification.
Redemption Process Remains Unclear
Token holders have been instructed to contact the issuer to request redemption in fiat currency or USDT. However, no redemption deadline has been specified, and detailed verification procedures have not been published.
Coin Nomad Exchange entered voluntary liquidation following a shareholder vote on September 3, 2026. Creditors have until approximately October 14, 2026, to file claims against the exchange.
Without a published deadline or clear verification process for redemptions, holders face uncertainty about whether their tokens will be honored as the issuer winds down operations.
