Kyrgyzstan has officially shut down its $50 million USDKG stablecoin less than a year after its November 2025 launch, with the government ordering the liquidation of issuer EVA and state-owned Coin Nomad Exchange. According to reports from Akchabar, the government's August 20 order directed the Finance Ministry to liquidate OJSC EVA and OJSC Coin Nomad Exchange under Cabinet of Ministers Order No. 639-t. The official USDKG website confirmed the project's termination, stating the measures were adopted to optimize state participation in commercial companies and improve management of state assets. The shutdown aims to optimize state asset management amid ongoing scrutiny of crypto networks in the region.
USDKG holders can exchange their tokens for fiat currency or USDT through the project's official contact email address at email@usdkg.com. As reported by Akchabar, the notice provides a redemption route but lacks specific details such as redemption deadlines, available fiat currencies, or verification requirements. The project's website links the shutdown to the termination of USDKG operations on blockchain networks, though the token itself is not directly named in the government order. USDKG entered circulation in November 2025 as a 1:1 USD-pegged stablecoin issued by a company owned by Kyrgyzstan's Ministry of Finance.
The shutdown follows UK sanctions designation on May 26, 2026, when Britain's Foreign, Commonwealth & Development Office designated OJSC Virtual Asset Issuer under its Russia sanctions regime. According to the UK government, there were 'reasonable grounds to suspect' the company had supported or obtained benefits from Russia's government through business 'of economic significance to the Government of Russia.' The sanctions included asset freezes, trust-services restrictions, director disqualification measures, and internet-services sanctions. Two days after the designation, OJSC Virtual Asset Issuer was re-registered as OJSC EVA, with no official explanation linking the name change to the UK action.
Despite the shutdown, USDKG continues trading near $1 with 50 million tokens in circulating supply and a market capitalization of approximately $50.03 million. According to CoinGecko, USDKG shows a 24-hour trading range of roughly $0.9998 to $1.00, with trading volume at approximately $22,955 on Uniswap V3 and Curve on Ethereum. The token's contract information identifies the Tron address as TXZo12qvnEVKvU2zbfuQeMXKusWyxonwEG and Ethereum contract as 0xE820C06321E60d36257C666643Fa5436643445E3. The official project documentation indicates minting and burning controls through the issuer's smart-contract structure.
Coin Nomad Exchange had entered voluntary liquidation before the USDKG shutdown became public, with the exchange's sole shareholder approving liquidation on September 3, 2026. As reported by Akchabar, Coin Nomad recorded a net profit of 1.47 million Kyrgyz soms during the first half of 2026, though its operating business produced a loss and the company fell behind on tax payments. The exchange's liquidation notice stated creditor claims would be accepted for one month from September 14, 2026, putting the claims window around October 14, 2026. Coin Nomad was registered in December 2024 as Kyrgyzstan's first state-owned cryptocurrency exchange.
