CZ Removes Statement Refuting Involvement in Kyrgyzstan’s New Cryptocurrency Bank

Changpeng Zhao, the founder of Binance, has removed an X post in which he refuted claims regarding his involvement with Kyrgyzstan’s newly established Bereket Bank, a commercial institution focused on digital assets aimed at attracting foreign investments.

This action came after President Sadyr Japarov of Kyrgyzstan publicly stated in a local media interview that Zhao had suggested the creation of a private crypto bank during a meeting in May 2024.

The National Bank of Kyrgyzstan has authorized Bereket Bank as part of the country’s crypto strategy, with reports indicating that President Japarov’s son, Nurdoolot, is a co-founder alongside former Parliament Speaker Marat Sultanov.

Japarov emphasized that the bank functions as a private entity without state ownership or family control, despite the familial connection.

President Sadyr Japarov. | Source: Kabar

Conflicting Statements Spark Confusion

Zhao initially reacted to media reports alleging he proposed the bank’s creation by asserting that the claim was untrue.

He stated that he never proposed establishing a bank, has no desire to manage one, and did not recognize the name mentioned.

However, the post denying these allegations was later deleted from his X account without any explanation, leading to questions regarding the validity of his denial.

The inconsistency arose after a Coin Bureau report connected Zhao to the bank’s formation, prompting the publication to issue a correction.

BREAKING: CZ proposed creating a private crypto bank in Kyrgyzstan.
“Bereket Bank” will focus on digital assets and foreign investment with no state or family ownership. pic.twitter.com/i84YrdhRxs

— Coin Bureau (@coinbureau) November 2, 2025

President Japarov’s interview with Kabar news agency provided further context, stating that Zhao approached him in May with the proposal to establish a digital bank together.

According to Japarov, Zhao declined to be involved in a state-owned bank but agreed to move forward with a private institution centered on virtual assets.

Japarov defended his son’s involvement by noting that both Nurdoolot and his brother, Rustam, possess degrees in economics and finance, and are focused on attracting foreign investors rather than seeking political positions.

“Isn’t it better for them to be busy with their personal affairs rather than getting involved in government affairs?” Japarov remarked during the interview.

He added that Zhao’s presence in Kyrgyzstan signifies international confidence in the country’s initiatives to combat corruption and its dedication to development.

Deep Ties Between Zhao and Kyrgyzstan

Despite his denial, Zhao has engaged in extensive collaboration with Kyrgyzstan’s government throughout 2024 and into 2025.

In April, the National Investment Agency under Japarov’s office signed a memorandum of understanding with Zhao to enhance the country’s cryptocurrency and blockchain ecosystem, which includes infrastructural support, technical consulting, and educational programs.

The partnership was formalized during discussions aimed at establishing Kyrgyzstan as a progressive hub in digital finance.

By October, Zhao announced several milestones during the National Council for the Development of Virtual Assets and Blockchain Technologies meeting.

These initiatives included the launch of a national stablecoin on BNB Chain, preparations for a central bank digital currency rollout, the establishment of a national crypto reserve that includes BNB, collaboration with Binance Academy to support ten Kyrgyz universities, and the complete localization of the Binance app in Kyrgyz.

Kyrgyzstan has launched a new stablecoin pegged 1:1 to the national currency, marking its latest step toward broader crypto adoption. #Stablecoin #Kyrgyzstanhttps://t.co/SmCGM3Byc4

— Cryptonews.com (@cryptonews) October 26, 2025

Zhao also facilitated partnerships between Kyrgyzstan and other blockchain companies, including EthSign, providing what he described as genuine strategic value beyond mere capital investment.

In May 2025, Zhao participated in meetings at Issyk-Kul Lake, where officials discussed the implementation of Binance Pay for nationwide crypto payments and the expansion of blockchain education initiatives.

“Honored to be invited by Mr. President Sadyr Japarov of Kyrgyzstan to join the National Crypto Council,” Zhao stated at that time.

He has acted as a strategic adviser to the country’s crypto committee since April 2024, assisting in the development of regulatory frameworks and blockchain solutions that extend beyond trading applications.

Regional Crypto Ambitions Expand

In March, Azat Peruashev, a member of Kazakhstan’s parliament, urged his government to create a national crypto bank, citing concerns that up to 90% of crypto trading occurs outside official oversight.

He contended that a state-controlled institution could help mitigate tax evasion, fraud, and capital flight associated with unregulated platforms.

The Mäjilis, the lower house of the Kazakh parliament. | Source: Mäjilis of The Parliament of The Republic Of Kazakhstan [CC BY 4.0]

Recently, the Kyrgyz government also confirmed plans to pilot its digital som through three phases, beginning with interbank transfers, followed by integration with the Central Treasury for government payments, and concluding with offline transaction testing.

The National Bank will determine whether to fully issue the CBDC after completing its assessments by 2026.

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