Changpeng Zhao Denies Claims of Launching a Private Crypto Bank in Kyrgyzstan

Changpeng Zhao, the founder and former CEO of Binance, has publicly denied widespread reports alleging that he planned to establish a private cryptocurrency bank in Kyrgyzstan. The rumors, which quickly spread across social media and crypto outlets, claimed Zhao intended to create an institution called “Bereket Bank”, a proposed digital asset‑focused bank independent of both government and family ownership.

The controversy erupted after his recent high‑profile visit to Kyrgyzstan, where Zhao participated in official meetings on the nation’s blockchain and digital asset policies. The timing of his visit, coupled with Kyrgyzstan’s rapid progress in digital finance, fueled speculation about Zhao’s deeper involvement in the country’s initiatives.

CZ addresses the rumor on X

In response to the reports, Zhao directly refuted the claim on X, writing:

“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.”

Expanding on this statement, Zhao humorously described the claim as “not quite ‘4’ FUD level, but still wrong.” He noted that while he advocates for greater cooperation between traditional banking systems and cryptocurrency services, he has “no interest in running one” personally. Zhao even mentioned that he did not recognize the name “Bereket Bank,” which had appeared in several local reports.

The post garnered significant attention from the crypto community, leading to a wave of light‑hearted responses and memes. One user jokingly suggested that Zhao’s next move might be to open “a lemonade stand in Bishkek,” to which Zhao playfully replied, “I might have proposed that.”

Visit to Kyrgyzstan sparks speculation

The misunderstanding appears to have arisen from Zhao’s recent trip to Kyrgyzstan earlier this month. As a strategic consultant to the National Council for the Development of Virtual Assets and Blockchain Technologies, Zhao met with government officials and President Sadyr Japarov to discuss the country’s growing blockchain ecosystem.

During this period, Kyrgyz authorities announced a major series of digital finance initiatives, including plans to launch the national stablecoin KGST, built on Binance’s BNB Chain, and to develop a central bank digital currency (CBDC) for government transactions. The government also proposed establishing a national cryptocurrency reserve to stabilize the local economy and attract foreign investment.

Zhao shared a post on X applauding these developments, praising Kyrgyzstan’s “forward‑thinking approach to digital money”. He also confirmed that Binance Academy would partner with ten Kyrgyz universities to integrate blockchain studies into their academic curricula. This educational cooperation, while unrelated to any banking activities, likely contributed to assumptions that Zhao’s role in Kyrgyzstan extended beyond consultancy.

Crypto community reacts and reflects

While the “Bereket Bank” rumor turned out to be unfounded, it underscored how quickly miscommunication can spread in the fast‑moving crypto landscape. The episode also highlighted Zhao’s ongoing influence, even after stepping away from day‑to‑day leadership at Binance. His engagement in advisory work, and Kyrgyzstan’s openness to private sector collaboration, illustrated how public figures in blockchain continue to shape national dialogues around digital finance.

“Banks should collaborate with crypto in general, but I don’t want to run one,” Zhao reiterated, emphasizing that integration, not ownership, remains his guiding principle.

Kyrgyzstan advances crypto regulatory reforms

Meanwhile, Kyrgyzstan’s government continues to refine its legal framework for virtual assets. Lawmakers are reviewing amendments to the “On Virtual Assets” bill that would establish a state‑backed crypto reserve and transfer market oversight from the Financial Market Regulation and Supervision Service to a new agency reporting directly to the president.

Though the draft legislation is still awaiting final approval, its goal is to create stronger oversight mechanisms, mitigate financial risks, and attract responsible international investment.

These developments reflect Kyrgyzstan’s ambition to position itself as a regional leader in digital finance while maintaining regulatory stability, a balance that international observers say could make the small Central Asian nation an emerging hub for blockchain innovation.

A fine line between advisor and entrepreneur

Zhao’s denial of involvement in founding any bank serves as a reminder of that delicate boundary between entrepreneurial interest and advisory influence. As Kyrgyzstan continues to embrace the digital economy through initiatives like the KGST stablecoin and educational partnerships, the global crypto community is likely to watch both Zhao’s engagement and the nation’s progressive policies closely.

With clear regulatory moves and institutional modernization underway, Kyrgyzstan’s digital journey continues forward, not as a playground for rumor but as a potential blueprint for thoughtful blockchain adoption in Central Asia.

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