Kyrgyzstan pulls the plug on its $50 million state stablecoin and its state crypto exchange, months after Britain sanctioned the issuer

Kyrgyzstan is shutting down the dollar stablecoin it launched less than a year ago. The USDKG website says that under Cabinet of Ministers Order No. 639-t, dated August 20, 2026, the project is ceasing operations, including its activity on blockchains. Holders are told to email the project to exchange their tokens for cash or for Tether's USDT. The notice gives no deadline or exchange terms.

The order instructs the Finance Ministry to liquidate the token's issuer, first registered as Virtual Asset Issuer and later renamed EVA, and Coin Nomad Exchange, ForkLog reported. It says the aim is to optimize the state's stakes in companies.

USDKG was launched in November 2025 with 50 million tokens, backed by gold. An inspection by Kreston Global counted 30 gold bars weighing about 376 kilograms, crypto.news reported.

On May 26, 2026, Britain added the issuer to its Russia sanctions list and froze its assets. The order does not link the shutdown to that decision.

Coin Nomad Exchange, owned by the Finance Ministry, began voluntary liquidation on September 3. It booked a small profit in the first half of 2026 only thanks to non-operating income, the local outlet Akchabar reported. Kyrgyzstan's som-pegged stablecoin, KGST, keeps operating, according to ForkLog.