Kyrgyzstan's Crypto Council Approves Framework, Pulls Plug on Flagship Stablecoin

Kyrgyzstan's National Council for the Development of Virtual Assets and Blockchain Technologies met on September 5 under the chairmanship of President Sadyr Japarov. The council approved a regulatory framework, but also took a surprising turn by approving the liquidation of OAJ 'ElPay', the entity that issued the KGST stablecoin.

The KGST stablecoin, pegged to the Kyrgyz som, launched in late 2025 on BNB Chain and was listed on Binance in December 2025. It became the first stablecoin from the Commonwealth of Independent States region to achieve this milestone.

The government is also working on a gold-backed stablecoin called USDKG, pegged to the US dollar and issued by a state-controlled entity. This project has a modest issuance of approximately $50 million, but represents a significant commitment of state resources to the digital asset thesis for a country with a GDP under $12 billion.