Kyrgyzstan shutters $50M state-backed USDKG stablecoin project

The Cabinet of Ministers issued Order No. 639-t in late August, mandating the formal dissolution of OJSC EVA—the renamed issuer of the $50 million stablecoin—and the state-owned Coin Nomad Exchange. While the government framed the decision as a measure to optimize state assets, the project’s abrupt termination comes only four months after the UK’s Foreign, Commonwealth & Development Office designated the issuer, then known as Virtual Asset Issuer, under its Russia sanctions regime. The designation triggered an immediate halt to trading services on platforms like OSL HK.

Despite the liquidation, USDKG tokens remain in circulation with a market value hovering near $1. The project’s official website instructs holders to seek redemptions for fiat or USDT via email, though the notice lacks specific deadlines or verification protocols. This creates significant uncertainty for participants, especially as Coin Nomad Exchange’s separate voluntary liquidation proceedings set a mid-October deadline for creditor claims. The closure highlights the mounting challenges for state-supervised digital assets operating in regions currently under the scrutiny of Western financial authorities for potential sanctions evasion.