Binance co-founder Changpeng Zhao, known widely as CZ, has publicly addressed and dismissed recent claims that the President of Kyrgyzstan is planning to launch a national cryptocurrency exchange.
Speculation arose after reports circulated suggesting that a building in Kyrgyzstan would serve as a “national digital currency trading hall,” sparking confusion about the government’s crypto intentions.
Taking to the X platform, CZ clarified the situation, stating, “No building was given. What kind of digital currency exchange uses a building as a trading hall?”
He emphasized that crypto trading is inherently digital, not tied to any physical trading floor, and the reports were based on a misinterpretation.
Misunderstanding Rooted in Broader Digital Initiatives
The confusion appears to have originated from Kyrgyzstan’s recent push to expand its digital infrastructure.
Some local media interpreted the government’s investment in digital-related facilities as part of a national exchange initiative.
However, CZ explained that the reference to a “building” was likely about facilities being developed for administrative or educational purposes related to blockchain and digital technology.
Rather than establishing a centralized trading venue, Kyrgyzstan’s government is reportedly investing in spaces meant to support digital literacy and the development of future technologies.
Binance’s Strategic Collaboration With Kyrgyzstan
Despite dismissing the notion of a national exchange, CZ confirmed that Binance is actively collaborating with the Kyrgyz government on other strategic initiatives.
The Kyrgyz National Investment Agency recently signed a memorandum of understanding (MoU) with Binance, setting the stage for a long-term partnership focused on fostering blockchain innovation in the country.
The MoU outlines areas of cooperation such as infrastructure development, policy consultation, and education.
Binance’s role will be to provide technical support and advisory services, helping Kyrgyzstan lay the groundwork for a sustainable digital economy.
Emphasis on Education and Innovation Over Trading Platforms
The primary objective of the Binance-Kyrgyzstan agreement is to build local capacity in blockchain technology through education and infrastructure, not to establish a functioning exchange.
According to CZ, Kyrgyzstan is aiming to create a fertile environment for future crypto innovation by investing in blockchain education, workshops, and research programs.
The proactive approach seeks to equip students, professionals, and government officials with the knowledge and tools to explore and utilize blockchain responsibly.
The focus is clearly on long-term growth and knowledge-building rather than immediate trading operations.
Broader Crypto Landscape in Kyrgyzstan Undergoes Change
In parallel with these developments, Kyrgyzstan is navigating shifts in its broader crypto environment.
The country’s revenue from crypto mining taxes dropped by 50% in 2024, yielding only $500,000, a reflection of both global downturns and local economic dynamics.
However, the nation continues to explore innovation in the space, with its parliament recently approving a legislative framework for adopting a central bank digital currency (CBDC), the digital Som.
The incident signals a dual-track approach: while the country remains cautious about direct trading platforms, it is actively pursuing regulated digital currency and blockchain adoption at the state level.