Binance founder Changpeng Zhao has distanced himself from rumors linking him to the launch of a crypto bank in Kyrgyzstan.
Summary
- CZ has denied proposing the creation of a crypto bank in Kyrgyzstan called “Bereket Bank”.
- He emphasized having no interest in operating a crypto bank, despite supporting crypto-banking relations in general.
- The country recently launched its KGST stablecoin on the BNB Chain and plans a CBDC for government payments.
Changpeng Zhao (CZ), the former CEO of Binance, has publicly denied claims suggesting he proposed the creation of a private crypto bank in Kyrgyzstan. A news media report alleged that CZ was behind the proposal for “Bereket Bank,” a digital asset-focused institution with no state or family ownership ties. In response, CZ quoted the claim on X stating:
“This isn’t correct… I never proposed creating a bank myself. While I support banks working with crypto generally, I have no interest in running one.”
While Zhao has since deleted the tweet for reasons unclear, his clarification comes shortly after a recent visit to Kyrgyzstan, where he attended the second meeting of the National Council for the Development of Virtual Assets and Blockchain Technologies in his role as strategic adviser.
CZ’s engagement with the council has sparked speculation regarding his influence in the region’s rapidly evolving crypto sector. During the visit, CZ also met with Kyrgyz President Sadyr Japarov. Shortly after, the nation announced the launch of its national stablecoin, KGST, on the BNB Chain. The government further revealed plans to roll out a central bank digital currency (CBDC) for use in state-related payments and set up a national cryptocurrency reserve, initiatives CZ highlighted in a post last week.
Zhao also announced partnerships between Binance Academy and ten of Kyrgyzstan’s top universities, aimed at boosting blockchain education, likely fueling the misinterpretation of his advisory role and growing influence in the region’s crypto policy-making.
Changpeng Zhao-backed crypto bank rumors come as Kyrgyzstan opens up to regulations
Meanwhile, Kyrgyzstan is moving closer to introducing comprehensive crypto regulations. Lawmakers are currently reviewing amendments to the country’s “On Virtual Assets” law, which propose establishing a state-backed crypto reserve to strengthen oversight of digital assets.
The draft also includes plans to transfer regulatory authority from the Financial Market Regulation and Supervision Service to a new, yet-to-be-named “authorized body” that will report directly to the president.
While the bill has not yet been passed and the regulatory body has not been appointed, the move signals Kyrgyzstan’s intent to create a more centralized and transparent framework for its growing digital asset market.
