Binance co-founder Changpeng “CZ” Zhao has denied claims that he proposed or would run a private crypto-focused bank in Kyrgyzstan, clarifying that he only supports more banks that work with crypto and has no interest in operating one.
Key Takeaways:
- CZ dismissed Kyrgyz President Sadyr Japarov’s statement that he proposed creating Bereket Bank, saying he “never proposed creating a bank myself.”
- The Binance co-founder confirmed his support for crypto-friendly banks but denied involvement in any such institution.
- CZ’s clarification emphasizes that advising on crypto policy is different from directly running a bank
Kyrgyzstan’s president recently stated that Changpeng “CZ” Zhao had visited the country in May and suggested creating a private bank that would handle cryptocurrency transactions. Officials claimed this led to the establishment of Bereket Bank.
CZ quickly responded on X (formerly Twitter) in a deleted post, saying the report was “not correct.” He clarified that he “never proposed creating a bank” and has “no interest in running one.” The Binance co-founder also added that he doesn’t even recognize the bank’s name mentioned by Kyrgyz officials.
CZ’s post (deleted) debunking a Coin Bureau report.
Despite distancing himself from the claim, CZ reiterated his belief that more digital banks should operate in ways that accommodate crypto exchanges and blockchain-based financial systems.
Meanwhile, Coin Bureau posted on X, noting that its source used in the said report is incorrect according to CZ.
Background: Kyrgyzstan’s Push for Crypto Adoption
The Central Asian nation has been actively positioning itself as a crypto-friendly hub. In recent months, Kyrgyzstan has rolled out digital asset initiatives, including the development of a stablecoin pegged to its national currency, the Som, and announced blockchain education programs.
CZ’s previous engagements in Kyrgyzstan include signing a memorandum of understanding (MoU) to advise on regulatory frameworks and promote blockchain education under the BNB Chain ecosystem. While this partnership boosted Kyrgyzstan’s profile in the cryptocurrency space, CZ’s latest statement confirms his role remains purely advisory.
Market Reaction: Limited Impact Amid Bitcoin Correction
CZ’s recent post clarifying an “incorrect” report saw little to no impact to overall market sentiment. At the time of writing (11:45AM UTC), Bitcoin (BTC) is trading at approximately $107,654, showing a 3.0% price drop over the past 24 hours. Before the decline, BTC peaked an intraday high around $111,130, then reached intraday lows near $107,124 as per CoinGecko, suggesting a volatile price action in the day.
The broader crypto market also showed weakness, with most top altcoins recording minor losses amid a general cooldown following last week’s rally. Overall, there was no sign of panic selling or volatility spikes directly linked to CZ’s denial. Traders appeared to treat the story as a reputational matter rather than a catalyst for market movement.
What’s Next?
While CZ’s statement distances him from Bereket Bank, Kyrgyz regulators are unlikely to step back from their crypto investment and banking initiatives. The country’s leadership has expressed continued interest in developing infrastructure to attract DeFi projects and blockchain-based payment systems.
Any future clarifications from Bereket Bank or Kyrgyz authorities could determine whether the project proceeds independently or faces credibility questions following CZ’s denial. For now, the former Binance CEO’s influence remains limited to advocacy and advisory efforts, not direct financial operations.
Summary
CZ denied proposing or running a private Kyrgyz crypto bank, clarifying his role as an advisor and supporter of crypto-friendly banking rather than an operator; the market showed little reaction.
