# Kyrgyzstan Shuts Down USDKG Issuer After May 2026 UK Sanctions

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/27963
Published: 2026-10-08T10:57:02.000Z
Updated: 2026-10-08T10:57:02.000Z
Section: Regulation

> The $50 million gold-backed stablecoin launched in November 2025 for cross-border payments. The government also ordered the closure of Coin Nomad, a state-owned crypto exchange.

Kyrgyzstan has shut down the $50 million USDKG stablecoin project and ordered the liquidation of its issuer, EVA, after the United Kingdom sanctioned the company in May 2026.

The government also closed Coin Nomad, described as the country’s first state-owned crypto exchange. The moves put a state-backed digital-asset project and its trading venue out of operation at the same time.

USDKG launched in November 2025 as a dollar-pegged token backed by physical gold. It was designed to support cross-border payments, giving the project a role beyond domestic crypto trading.

The UK imposed sanctions on EVA in May 2026. Kyrgyzstan’s decision to wind down the project shows how sanctions affecting a crypto issuer can force changes across related token and exchange operations.

The liquidation of EVA and the closure of Coin Nomad are the next concrete steps in ending the USDKG initiative.