Kyrgyzstan to liquidate USDKG issuer and burn 50.14m tokens
Kyrgyzstan is winding down its gold-backed USDKG stablecoin and state-owned Coin Nomad Exchange, with holders told to redeem before the Tron and Ethereum contracts are suspended.
Key points
- The cabinet ordered the liquidation of EVA, USDKG's issuer, and state-owned Coin Nomad Exchange, citing asset-management optimisation.
- All 50,140,738 USDKG tokens will be consolidated and sent to burn addresses before the Tron and Ethereum contracts are suspended.
- The UK sanctioned Virtual Assets Issuer, later known as EVA, on 26 May over suspected support for the Russian government.
Bitcoin.com News reports that the government ordered the liquidation of EVA, the USDKG issuer, alongside Coin Nomad Exchange, describing the move as an effort to optimise state participation in companies and improve management of government assets.
The closure follows international scrutiny. Kyrgyzstan's stated reason for the liquidation is asset-management optimisation rather than sanctions.
Its end less than a year after launch shows how geopolitical exposure can weigh on state-linked crypto assets as much as reserves or technology.
What to watch: Holders must redeem their USDKG into fiat or USDT before the Tron and Ethereum contracts are suspended and the tokens are burned.
Live updates on NewsFeeds:RegulationStablecoinsDesk editor: Keshav Aggarwal (accountable for this page; this summary was not edited by hand)
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