Kyrgyz President Credits CZ for Crypto Bank as Founder Denies Role

Changpeng Zhao, the founder of Binance, has deleted a post in which he denied involvement in Kyrgyzstan's new crypto-focused bank, Bereket Bank, despite claims by the country's president that the idea was inspired by his advisory work. The controversy emerged after Kyrgyzstan officially launched the institution on Nov. 2, marking a significant step in its ambition to become a regional hub for regulated digital assets, according to a Crypto.News report.

President Sadyr Japarov publicly credited Zhao for inspiring the project, stating that the former Binance CEO had initially rejected the idea of a state-owned crypto bank, leading to the establishment of the private Bereket Bank instead, according to a Yahoo Finance article. Japarov's remarks, reported by local media and a Cointelegraph report, suggested close collaboration between Kyrgyz officials and Zhao, who serves as a strategic adviser to the country's National Council for the Development of Virtual Assets and Blockchain Technologies.

Zhao, however, swiftly pushed back against the claims. In a now-deleted X post, he clarified that he had never proposed the creation of the bank and emphasized having no interest in operating a crypto bank himself. "I support banks working with crypto generally, but I have no interest in running one," he wrote, as noted in the Crypto.News report. The deletion of the tweet has fueled speculation about the extent of his influence in Kyrgyzstan's crypto sector, particularly as the country recently launched its KGST stablecoin on the BNB Chain and announced plans for a central bank digital currency (CBDC), according to a CryptoNews article.

Despite the denial, Kyrgyzstan's engagement with Zhao and Binance remains robust. In April 2025, the two parties signed a memorandum of understanding to advance blockchain education and regulatory frameworks. Binance Academy has also partnered with ten Kyrgyz universities to expand blockchain education, a move that may have contributed to the misperception of Zhao's role in Bereket Bank's creation, according to a Yahoo Finance article.

The launch of Bereket Bank aligns with Kyrgyzstan's broader strategy to regulate and integrate digital assets into its financial system. The institution, founded by Nurdoolot Nurgozhoyev and former Parliament Speaker Marat Sultanov, will operate under the 2022 Virtual Assets Law, which governs digital asset service providers, as reported by Yahoo Finance. The government's phased rollout of its digital som CBDC, starting with interbank transfers and progressing to government payments by 2026, further underscores its commitment to financial innovation, as noted in the CryptoNews article.

Regional interest in crypto banking is growing, with Kazakhstan's parliament member Azat Peruashev recently advocating for a state-controlled crypto bank to combat tax evasion and capital flight, an idea highlighted in the CryptoNews article. Kyrgyzstan's approach, however, appears to prioritize private-sector participation, reflecting a nuanced balance between regulation and innovation.

As the debate over Zhao's role continues, the broader implications for Central Asia's crypto landscape remain significant. With Binance's infrastructure support and Kyrgyzstan's regulatory advancements, the region is positioning itself as a testing ground for digital finance, potentially influencing neighboring countries like Kazakhstan, as earlier noted by Cointelegraph.