Kyrgyz President Challenges U.S., U.K. Sanctions on Financial Institutions and Crypto Networks

Kyrgyz President Sadyr Zhaparov has publicly criticized the U.S. and U.K. governments for imposing sanctions on Kyrgyz financial institutions and crypto networks allegedly linked to Russian sanctions evasion. The measures target entities like Capital Bank and Keremet Bank, as well as a Kyrgyz-based firm issuing the ruble-pegged stablecoin A7A5.

Zhaparov insists the sanctions lack evidence and will fail to isolate Russia, given ongoing Western trade with Moscow. "The U.S. was unable to present a single fact of violation," he told state media, emphasizing that 21 banks operate under strict oversight in Kyrgyzstan.

The sanctions spotlight crypto's role in geopolitical tensions, with Britain specifically naming blockchain networks allegedly used to fund Russia's Ukraine war. This marks another instance of stablecoins becoming collateral damage in international conflicts.