Advisory Ties or Direct Role? CZ's Kyrgyzstan Crypto Bank Controversy

CZ Zhao, co-founder of Binance, has denied claims by Kyrgyzstan's President Sadyr Japarov that he proposed establishing a private cryptocurrency bank during a visit to the Central Asian nation in May 2025. The dispute emerged after Japarov credited CZ with inspiring the creation of Bereket Bank, Kyrgyzstan's first private financial institution focused on digital assets, which launched on November 2. While Japarov initially stated he had preferred a state-owned bank but shifted to a private model after CZ's input, the crypto executive clarified his role as an advisor rather than an operator, according to a Coinotag report.

CZ's denial came via a post on X, where he dismissed the allegations as "not quite FUD level 4, but still false," emphasizing he has no interest in running a bank and had never proposed the initiative, as Cointelegraph reported. He acknowledged a general support for "as many digital banks supporting crypto as possible" but stressed no direct involvement in Bereket Bank's establishment. Despite the denial, Kyrgyz officials and local media had previously linked CZ to the project, citing advisory discussions in early 2025, according to Yahoo Finance.

The controversy highlights CZ's ongoing advisory role in Kyrgyzstan, where he signed a memorandum of understanding with the National Investment Agency in April 2025 to guide blockchain and crypto regulations. Under his guidance, Kyrgyzstan has rolled out a stablecoin pegged 1:1 to the som on the BNB Chain and integrated Binance Academy with local universities, according to the Coinotag report. These initiatives align with the country's broader strategy to position itself as a regulated crypto hub, though CZ's involvement in Bereket Bank remains disputed, per Investor Empires.

Bereket Bank, founded by Nurdoolot Nurgozhoyev and former Parliament Speaker Marat Sultanov, operates under Kyrgyzstan's 2022 Virtual Assets Law. It offers services such as crypto custody, stablecoin operations, and blockchain-based remittances, reflecting the government's push to digitize finance. President Japarov's initial praise for CZ's "inspiration" sparked global attention, but the founder deleted his denial post amid backlash, leaving the narrative unresolved, as reported by Yahoo Finance.

Kyrgyzstan's crypto ambitions extend beyond Bereket Bank. The country has also partnered with Binance to explore BNB Chain integration for national reserves and launched the KGST stablecoin. Analysts note that while advisory roles can shape policy, they often lead to misinterpretations of direct involvement, as seen in this case, according to the Coinotag coverage.

The situation underscores the challenges of international crypto collaboration, where high-profile figures like CZ can influence regulatory frameworks without operational ties. As Kyrgyzstan advances its digital asset agenda, stakeholders will likely monitor whether Bereket Bank's success reinforces its status as a crypto-friendly jurisdiction or highlights the complexities of balancing advisory input with institutional autonomy, as noted by Yahoo Finance.