Kyrgyzstan liquidates 57 companies over sanctions risks

Kyrgyzstan is forcibly liquidating 57 companies as part of efforts to minimize sanctions risks, according to Bakyt Sydykov, the president's special representative on sanctions policy. An additional 52 legal entities have already ceased operations. State banks have closed more than 240 accounts.

The measures target the use of the republic's territory and financial infrastructure to circumvent international sanctions — including activities related to the A7 network and the A7A5 stablecoin. The State Financial Regulator revoked licenses from several market participants, the cabinet of ministers adopted decisions to liquidate a number of organizations, and materials on other entities have been referred to competent authorities.

The National Bank, together with commercial banks, is improving client verification procedures and establishing beneficial ownership. Banks report monthly to the regulator on closed accounts, blocked payments, and service denials.

The National Agency for Virtual Assets and Blockchain Technologies is developing a presidential decree providing for enhanced verification against UN, European Union, United Kingdom, and United States sanctions lists. In parallel, a unified digital platform for licensing and supervision of virtual asset service providers is being created, which will allow for automated verification of applicants, transaction tracking, and cryptocurrency wallet analysis.

"The territory, jurisdiction, banking and payment infrastructure of the Kyrgyz Republic must not be used for operations aimed at circumventing sanctions restrictions," Sydykov said.