A Kyrgyz company, OJSC "Virtual Asset Issuer", which issues the stablecoin USDKG, has been hit with UK sanctions. British authorities have frozen the company's assets, imposed restrictions on its management, and banned the provision of certain trust services.
WHAT HAPPENED
According to Kloop, on 26 May 2026, the United Kingdom imposed sanctions against OJSC "Virtual Asset Issuer" — a company from Kyrgyzstan that issues the stablecoin USDKG.
The company's management also fell under the restrictions. British authorities froze the organisation's assets and imposed restrictions in the sphere of trust services.
Furthermore, social networks, internet providers, and online shops in the UK are required to take "reasonable steps" to restrict user access to the company's websites, applications, and content.
UK authorities stated that the company "is or has been involved in obtaining a benefit from or supporting the Government of Russia by carrying on business that is of economic significance to the Government of the Russian Federation."
"UK authorities have reasonable grounds to suspect that OJSC 'Virtual Asset Issuer' is or has been involved in obtaining a benefit from or supporting the Government of Russia by carrying on business that is of economic significance to the Government of the Russian Federation," the statement said.
UK Foreign Secretary Yvette Cooper stated that London continues to identify financial channels which, according to British authorities, support the Russian side.
WHAT IS KNOWN ABOUT THE COMPANY
OJSC "Virtual Asset Issuer" is owned by the Ministry of Finance of Kyrgyzstan and is engaged in issuing the digital token USDKG, which is backed by physical gold and pegged to the US dollar.
The project's launch took place in November 2025 with the participation of the President of Kyrgyzstan, Sadyr Japarov. The presidential administration stated at the time that the choice of company to issue the token was intended to ensure "a high level of trust and institutional reliability."
The project was positioned as one of the tools to enhance Kyrgyzstan's investment attractiveness.
In January 2026, the publication Kloop reported that the company features in schemes involving Moldovan businessman Ilan Shor. According to the publication, Kyrgyz firms may have been used to help Russia circumvent sanctions.
WHICH OTHER COMPANIES FROM KYRGYZSTAN HAVE ALSO BEEN SANCTIONED
The UK sanctions list also includes two other organisations from Kyrgyzstan.
Among them is OJSC "Eurasian Savings Bank". In its statement, the British side said the bank, in London's assessment, provided financial services to persons conducting activities in the Russian financial services sector, which the UK considers strategically significant for the Russian government.
Also subject to restrictions is OJSC "State Brokerage Company", which manages financial markets. According to the Kyrgyz Ministry of Justice, the company is owned by the Ministry of Finance jointly with OJSC "State Financial Holding". The UK claims the organisation may have obtained a benefit from or supported the Russian government through economically significant activities.
WHAT IS HAPPENING WITH THE REGION'S CRYPTO MARKET
Against the backdrop of sanctions pressure and increased control over the cryptocurrency sector in Central Asian countries, a decision by the Uzbek authorities regarding the crypto exchange UzNEX has also come to light, reports the news agency Kazinform.
The National Agency for Prospective Projects of Uzbekistan (NAPP) revoked the licence of the country's first crypto exchange at the request of the platform's owner — the South Korean company Kobea Group.
The NAPP said that the return of clients' funds and crypto assets will take place within three to ten working days. The company has opened a separate email address for user inquiries.
The UzNEX exchange began operations in Uzbekistan on 20 January 2020. In September 2024, the platform hosted the first official trades of the cryptocurrency Toncoin.