Changpeng Zhao, who started the cryptocurrency exchange Binance, has strongly disputed rumours that he was involved in setting up a private crypto bank in Kyrgyzstan. Local news reports said that Zhao was suggesting the development of an organization called “Bereket Bank” that would focus on digital assets and not be owned by the government or a family.

Zhao directly addressed the rumours in a post on X, saying, “This isn’t correct… I never proposed that I start a bank myself. Banks should collaborate with crypto in general, but I don’t want to run one”. Zhao’s statement emphasizes his broader push for integrating cryptocurrencies into regular finance without having to personally run any operations.

Zhao’s explanation follows a visit to Kyrgyzstan earlier this month that garnered significant attention. He attended the second meeting of the National Council for the Development of Virtual Assets and Blockchain Technologies. 

As a strategic consultant to the council, Zhao spoke with key individuals about the country’s expanding digital asset ecosystem. He also met with Kyrgyz President Sadyr Japarov during his visit, which demonstrated the country’s openness to new ideas in blockchain technology.

Kyrgyzstan’s Recent Blockchain Milestones

The rumors came out at the same time as a number of important changes in Kyrgyzstan’s crypto scene. The government said it would launch its national stablecoin, KGST, constructed on the BNB Chain, which is Binance’s own blockchain, just a few days after Zhao’s meetings.

This decision enables KGST to facilitate easier business transactions across borders for people in the landlocked Central Asian country, as well as to provide broader access to financial services for all.

To make these efforts even stronger, the government announced intentions to create a central bank digital currency (CBDC) that would be used for government payments. The plan includes setting up a national cryptocurrency reserve to help the economy stay stable and bring in foreign investment.

In a recent X post, Zhao personally talked about these improvements and praised Kyrgyzstan’s forward-thinking approach to digital money.

At the same time, Zhao said that Binance Academy would work with ten of Kyrgyzstan’s top colleges. The goal of these agreements is to include blockchain education in school curricula so that the next generation may learn how to use virtual assets and decentralized technologies.

These kinds of actions have clearly led people to believe that Zhao has more power, which could make them think his advice is actually about commercial deals.

Kyrgyzstan Moves Forward with Crypto Regulation

Kyrgyzstan is still working on improving the rules for digital assets, even with all these new ideas. Lawmakers are discussing amendments to the “On Virtual Assets” bill that would establish a state-backed crypto reserve. This structure would enhance control and mitigate risks as the sector continues to grow rapidly.

The proposed amendments also state that the current Financial Market Regulation and Supervision Service will no longer be responsible for regulating the market. Instead, a new body selected by the president will be in charge.

The bill is still waiting for final approval, and the organization has not yet been named, but these measures show that Kyrgyzstan is committed to creating a safe, unified system for managing virtual assets.

Zhao’s denial serves as a reminder of the fine line between being an advisor and an entrepreneur as Central Asia becomes a centre for crypto adoption. Kyrgyzstan’s continuous changes, including the implementation of the KGST and educational outreach, show that the market is growing and ready to connect with more global blockchain networks.