Asia’s crypto regulatory updates include Kyrgyzstan’s USDKG stablecoin shutdown

Kyrgyzstan is ending its national USDKG stablecoin project, while South Korea proposes tighter transfer controls and Thailand prepares to open its domestic crypto ETF market. These Asia crypto regulatory updates, reported on October 11, 2026, combine shutdowns and compliance requirements with institutional settlement tests and stablecoin partnerships.

Key takeaways

• Kyrgyzstan ordered the liquidation of USDKG’s issuer and Coin Nomad Exchange.
• Dubai requires reserves covering all VASP customer liabilities.
• Thailand’s first crypto ETFs will hold only Bitcoin or Ethereum.

According to Wu Blockchain, Kyrgyzstan instructed its Ministry of Finance to liquidate EVA, USDKG’s issuer, and Coin Nomad Exchange, the country’s first state-owned cryptocurrency exchange. The other developments cover transfer registration, mining electricity access, tokenization and sanctions compliance.

Kyrgyzstan ends its national stablecoin project

Kyrgyzstan’s shutdown aims to optimize state-owned asset management, officials said. USDKG launched in November 2025, with approximately 50 million tokens intended mainly for cross-border settlements.

The United Kingdom sanctioned the issuer in May 2026 on suspicion of supporting Russia through economically significant business activities. Holders can redeem USDKG for fiat currency or USDT.