Advisory Connection or Hands-on Involvement? CZ Faces Scrutiny Over Kyrgyzstan Crypto Bank

Binance co-founder CZ Zhao has refuted statements made by Kyrgyzstan’s President Sadyr Japarov, who claimed that CZ suggested the creation of a private crypto-focused bank during his visit to the country in May 2025. The disagreement arose after Japarov attributed the idea for Bereket Bank—Kyrgyzstan’s first private digital asset bank, launched on November 2—to CZ’s influence. Japarov had initially favored a state-run institution but reportedly shifted to a private model following CZ’s advice. However, CZ clarified that he only acted as an advisor and not as a founder or operator, according to a

.

CZ addressed the matter on X, rejecting the claims as “not quite FUD level 4, but still false,” and reiterated that he neither intended to operate a bank nor proposed the idea, as

. He expressed general support for the growth of digital banks that facilitate crypto, but emphasized he had no direct hand in founding Bereket Bank. Despite his denial, Kyrgyz authorities and media had previously associated CZ with the project, referencing advisory meetings in early 2025, according to .

This dispute brings attention to CZ’s ongoing advisory involvement in Kyrgyzstan, where he signed an agreement with the National Investment Agency in April 2025 to help shape blockchain and crypto policy. Under his counsel, Kyrgyzstan has introduced a stablecoin pegged to the som on the

Chain and incorporated Binance Academy into local university programs, as reported by Coinotag. These efforts are part of Kyrgyzstan’s broader plan to become a regulated center for crypto, though CZ’s role in Bereket Bank remains a point of contention, according to .

Bereket Bank, established by Nurdoolot Nurgozhoyev and former parliamentary speaker Marat Sultanov, operates under Kyrgyzstan’s Virtual Assets Law enacted in 2022. The bank provides services including crypto asset custody, stablecoin transactions, and blockchain-based money transfers, supporting the government’s digital finance initiatives. President Japarov’s initial remarks crediting CZ for inspiration drew international attention, but CZ later deleted his denial post following criticism, leaving the situation unresolved, as noted by Yahoo Finance.

Kyrgyzstan’s digital asset strategy goes beyond Bereket Bank. The government has also worked with Binance to consider using BNB Chain for national reserves and has launched the KGST stablecoin. Observers point out that while advisors can influence policy, their involvement is sometimes mistaken for direct participation, as demonstrated in this scenario, according to Coinotag’s analysis.

This episode illustrates the complexities of global crypto partnerships, where influential figures like CZ can shape regulatory approaches without being directly involved in operations. As Kyrgyzstan continues to develop its digital asset sector, industry watchers will be looking to see if Bereket Bank’s progress strengthens the country’s reputation as a crypto-friendly nation or highlights the difficulties of balancing advisory roles with institutional independence, as reported by Yahoo Finance.