The rumor started after Kyrgyz President Sadyr Japarov mentioned Zhao in connection with a planned Bereket Bank project.
Binance co-founder Changpeng Zhao (CZ) has refuted rumors that he proposed establishing a private cryptocurrency bank in Kyrgyzstan, calling them inaccurate and exaggerated. The controversy started when Kyrgyz President Sadyr Japarov mentioned CZ in reference to an institution called Bereket Bank.
CZ responded to the allegations directly on X, stating that he never proposed the creation of a bank in Kyrgyzstan.”This isn’t correct. Not quite ‘4’ FUD level, but still wrong. I never proposed creating a bank myself,” he wrote.
Zhao explained that although he is open to traditional banks cooperating with the crypto space, he has no plans to operate such a bank himself.
He added that the name mentioned in reports was unfamiliar to him, and he only made general comments on encouraging banks to embrace digital assets. The exchange founder later joked in a follow-up post, responding to a user’s comment about him starting a lemonade stand in Bishkek, saying, “I might have ‘proposed’ that.”
The confusion stems from recent remarks by President Japarov in which he said CZ had proposed a new financial institution that would attract foreign capital and serve as a hub for digital asset operations.
Japarov says he would have preferred to open a state-owned bank, but when CZ rejected the idea, “we agreed to open a private bank,” which became Bereket Bank.
The head of state stressed that the bank is a private business project that is expected to attract considerable investment into the country. Amid widespread backlash and reports from online fact-checkers connecting him to the private digital asset bank, CZ had deleted the tweet by press time.
Bereket Bank, founded by former Parliament Speaker Marat Sultanov and Nurdoolot Nurgozhoyev, is set to operate as a private commercial entity under Kyrgyzstan’s 2022 Virtual Assets Law that regulates the activities of digital asset service providers (VASPs).
The bank will offer conventional financial services, including loans, deposits, and remittances, as well as crypto-oriented services such as custody solutions, blockchain-based payments, and stablecoin management.
Although Zhao denied claims of opening a bank, his relationship with Kyrgyzstan remains active through ongoing cooperation. In April, he signed a memorandum of understanding with the country’s foreign investment agency to provide advice on blockchain technology and the regulation of digital assets.
Since then, Binance has backed several national initiatives, including the launch of a stablecoin pegged 1:1 to the Kyrgyzstani som. The token, KSGT, was launched in October and runs on Binance’s BNB Chain. At the time of its implementation, Zhao stated that BNB would also be part of the country’s digital reserve framework.
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