TLDR:
- Kyrgyzstan ordered the liquidation of USDKG issuer EVA and state-owned Coin Nomad Exchange.
- USDKG holders can exchange their tokens for fiat money or USDT as the project now winds down.
- The UK sanctioned the issuer on May 26 over business of economic importance to Russia’s government.
- USDKG launched in November 2025 as a gold-backed stablecoin pegged 1:1 to the dollar on Tron.
Kyrgyzstan stablecoin USDKG will stop operating after the government ordered the liquidation of its issuer, EVA. The Cabinet also told the Finance Ministry to close Coin Nomad Exchange, the country’s first state-owned crypto exchange.
The decision comes months after the United Kingdom sanctioned the issuer over alleged support for Russia. The official explanation offered by the government does not mention the sanctions. Holders can exchange their tokens for fiat money or USDT.
Government Orders Liquidation of Issuer and Exchange
The Cabinet of Ministers instructed the Ministry of Finance to liquidate EVA and Coin Nomad Exchange. Coin Nomad Exchange operated as the first state-owned crypto exchange in the country.
The government gave its official explanation as “optimization of state participation in companies and increasing the efficiency of state asset management.” The order was reported on October 7, 2026.
The issuer was the state-owned company Issuer of Virtual Assets. The Ministry of Finance served as the sole founder of that company. The registered issue amounted to just over 50 million tokens. As a result, the project remained fully under state control.
USDKG launched in November 2025 as the world’s first state-backed stablecoin supported by physical gold. The Kyrgyzstan stablecoin was pegged 1:1 to the U.S. dollar. Gold backing and dollar pricing formed its core design. The token ran on the Tron blockchain.
In May, the token received a listing on the Hong Kong regulated OSL platform. Trading took place in the USDKG/USDT pair.
Authorities positioned the Kyrgyzstan stablecoin as a tool for cross-border settlements. They also planned to develop the project until at least 2034.
UK Sanctions and Links to the A7 Network
On May 26, the United Kingdom added the Virtual Asset Issuer company to its sanctions list. British authorities accused the company of conducting business “of economic importance to the government of the Russian Federation.” The sanctions document names the USDKG token and the USDKG.com website among associated entries.
Two days later, on May 28, the issuer was re-registered under the shorter name EVA. The Kyrgyzstan stablecoin issuer appeared in a sanctions package alongside other crypto structures. The United Kingdom linked those structures to the Russian A7 project and the A7A5 ruble stablecoin.
Earlier reports accused the project of helping Russian authorities circumvent international sanctions. Those allegations focused on possible help for Moscow in avoiding restrictions. The liquidation order follows them. However, the government gave a different official explanation.
Meanwhile, the United States took separate action against A7. On October 1, the U.S. Treasury Department declared A7 a “shadow banking entity.”
Iran used it to circumvent sanctions, according to the department. At the same time, the Office of Foreign Assets Control labeled A7 a “transnational criminal organization.”
