Kirill Khomyakov, who is the regional director of Binance for Central and Eastern Europe, as well as Central Asia and Africa, shared in an exclusive interview with 24.kg the reasons why Kyrgyzstan has become one of the company's priorities, explained what cryptocurrency is in simple terms, offered advice for newcomers to avoid becoming victims of fraud, and discussed ideas for implementing a digital som in the country.
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Binance is the largest global cryptocurrency ecosystem and international platform for trading digital assets, founded in 2017 by Changpeng Zhao (CZ). It offers services for buying, selling, and storing cryptocurrencies, as well as developing technologies for digital payments, blockchain, and Web3 infrastructure. The platform operates in over 100 countries, serving tens of millions of users.
— How would you explain cryptocurrency in simple terms?
— Cryptocurrency is a digital asset that operates on blockchain technology. It can be conditionally divided into three groups.
The first group is Bitcoin. This is a unique class representing a truly decentralized asset that belongs to no one and is the largest in the world.
The second group is altcoins, which include all other tokens. They are created by various individuals or companies, and projects can be either centralized or decentralized. Some of them have functional applications, while others are purely for entertainment. Hundreds of new tokens emerge every day, but only a few survive.
The third group is stablecoins. These are digital assets pegged to national currencies, such as the dollar or euro, which allows them to maintain price stability unlike Bitcoin, whose price can fluctuate significantly. In other words, this is a digital form of money equivalent to what is held in a bank.
— You mentioned that Kyrgyzstan is a priority for you. Why is that?
— Kyrgyzstan is a small country with a limited population and economy, and in terms of market size, it cannot compete with major powers. However, its significance for us is not limited to market indicators.
Kyrgyzstan serves as one of the most active examples of government acceptance and support for blockchain technologies.
Some countries completely ban cryptocurrencies, others regulate them, and some are just preparing for implementation. Kyrgyzstan has already made significant progress: there are regulations in place, new rules are being developed, and infrastructure is improving.
We see support from the authorities, the functioning of the National Council under the President, the presence of a regulatory framework, and clear conditions for all participants: users, businesses, banks, and payment companies. When the state recognizes and regulates such technology, it bears fruit.
— What opportunities do ordinary citizens of Kyrgyzstan have to earn from cryptocurrency?
— This is a matter of education. Crypto assets are one of the tools for capital management, alongside gold, currencies, stocks, and bonds, but they have their own specifics.
The cryptocurrency industry is still young, and the market volume is smaller than that of traditional assets, leading to high volatility: today +5%, tomorrow -10%, the day after tomorrow +20%. This creates the potential for high returns but also increases risks.
I advise newcomers not to start with large investments. It is better to invest small amounts while simultaneously increasing your knowledge by trying different strategies. We have a free Binance Academy — a vast library of materials. For Kyrgyzstan, we have translated over 100 basic materials into Kyrgyz, and you do not have to be a platform user to learn for free.
— Who should engage in cryptocurrency, and who should not?
— We do not have strict criteria for users. Kyrgyzstan has a diverse range of users, but there are some conditions: a person must be of legal age and go through a standard identification procedure similar to banking.
Most users in Kyrgyzstan are aged between 18 and 35. However, crypto assets are used not only for trading but also for storage, payments, and international transfers, depending on needs.
— How do crypto assets compare to gold and stocks in terms of investments?
— If we look at the long term, since the emergence of Bitcoin, this asset has become one of the most successful in history. Many people think they are already too late, but we call this FOMO — fear of missing out. At the same time, the industry is still in its early stages of development.
Yes, in the short term, it may seem that gold is rising faster. But if we consider a horizon of a year or more, the returns on crypto assets significantly outperform other assets.
For those who do not wish to engage in daily trading, it is most reasonable to acquire quality assets and hold them long-term, accepting volatility as an inherent part.
— Which coins do you consider more reliable for investments?
— I will not mention specific projects, as this is always subjective. But there is a universal rule: DYOR — do your own research.
Spend 20–30 minutes studying what you are about to buy:
- examine the project's website;
- look at the team (if there is none — that’s a red flag);
- understand the business model: how the project makes money and where its application lies;
- evaluate the community, activity, investors, and level of publicity.
These simple steps significantly reduce the risk of falling into unscrupulous schemes.
— Where does the platform's responsibility end and the user's responsibility begin?
— In most cases, attacks are directed not at the platform but at the users themselves. We invest heavily in security and infrastructure, but fraudsters often resort to social methods, tricking individuals into providing their data.
Therefore, it is crucial to follow basic rules that can minimize risks:
enable two-factor authentication;
avoid clicking on suspicious links and opening untrusted files;
use complex passwords and do not use the same password for all services.
We also employ risk assessment and behavioral analysis, taking into account the device, geolocation, time of access, and typical transaction amounts. If suspicions arise, we may request additional verification or temporarily block the transaction until verification.
— How do you see the purpose of a digital som in Kyrgyzstan?
— For the state, it is important to maintain the stability of the national currency and manage the financial system. Digital currency allows for combining the advantages of blockchain with the security of the national currency, which is under the control of the central bank.
Kyrgyzstan already has the necessary foundation: regulations, licensed platforms, and support for innovations. This creates an opportunity for development as a regional hub.
Read more on the topic
Kyrgyzstan has launched its first national stablecoin pegged to the som.
The practical benefit lies in cheap and fast transfers. For example, consider how difficult and expensive it is to send $10,000 from Kyrgyzstan to Brazil through traditional channels. Meanwhile, the digital format can reduce the time to minutes and lower fees.
The launch is just the first step. It is important to create an ecosystem: integration with banks, convenient purchasing methods, and the development of payment scenarios.
— What are you afraid of in the development of the crypto industry?
— The general mood of people often depends on Bitcoin prices. When it rises, euphoria arises, and when it falls by 10–30%, discussions about it being a "scam" or a "pyramid" emerge. These fluctuations occur regularly.
Education is the key to success. We translate materials, localized the app into Kyrgyz, and launched a university project, planning to cover 36 universities. We also have a local educational program manager in Kyrgyzstan.
— What is your advice for those who want to try their hand at cryptocurrency?
— First: take basic courses. We have an educational program that explains what blockchain is, what Bitcoin is, and how to perform basic operations.
Second: test with small amounts that you can afford to lose.
Third: determine your strategy — whether to hold assets long-term or engage in trading. Trading with leverage is only for experienced users.
Don’t forget to continually enhance your knowledge and keep up with industry news.
— What myth about cryptocurrencies would you like to dispel?
— There is a belief that cryptocurrencies are intended solely for criminals and that they cannot be traced. In reality, blockchain ensures transparency: the entire history of transactions can be verified, and it is accessible to everyone. The level of transparency here is significantly higher than in traditional financial systems and, of course, higher than that of cash.
