Kyrgyzstan Orders Liquidation of USDKG Issuer

Kyrgyzstan has ordered the liquidation of the issuer of USDKG and state-owned Coin Nomad Exchange, while the stablecoin’s project notice directs holders to request redemption in fiat currency or USDT. The notice gives no deadline for submitting requests. The project website says Cabinet of Ministers Order No. 639, dated August 20, 2026, ends USDKG’s activities on blockchain networks. It instructs holders to contact the project by email to seek redemption. The order’s stated aims are to optimize state participation in commercial companies and improve management of state assets. The government order does not name USDKG directly, according to reporting on its provisions. The project’s website links the order to the end of the token’s operations. Local reporting says the order directs the Finance Ministry to liquidate OJSC EVA, the issuer formerly known as OJSC Virtual Asset Issuer, and Coin Nomad Exchange. The UK designated OJSC Virtual Asset Issuer on May 26, 2026, under its Russia sanctions program. The UK said there were reasonable grounds to suspect the company had supported or benefited from Russia’s government through business of economic significance.