Kazakhstan is planning to create a national crypto reserve funded by seized digital assets and state-run mining operations. The country’s central bank, the National Bank of Kazakhstan (NBK), will oversee this new reserve.
According to NBK Chairman Timur Suleimenov, the bank is exploring this idea as part of following global trends. He told a parliamentary inquiry that the reserve would be managed by the central bank or a special subsidiary focused on alternative investments.
The reserve will mainly use crypto assets taken from illegal activities and those mined by state-linked operations. Suleimenov explained that using seized crypto assets is common in other countries. He said, “The international practice indicates that expropriated crypto-asset and cryptocurrencies mined by a crypto miner with state participation can become sources of such a reserve.” The bank sees this as a way to control risks in the often-volatile crypto market.
Kazakhstan’s move comes as the country shows a growing interest in digital currencies. Recently, the government signed a deal with the Solana Foundation to set up a special economic zone for crypto business.
In light of this, The country’s president also announced plans to launch “CryptoCity,” a zone where people can use cryptocurrencies for everyday payments.
While Kazakhstan is embracing crypto, it also wants to keep things safe. Officials have cracked down on 36 illegal crypto exchanges in 2024. This action aims to stop money laundering and improve financial rules.
Meanwhile, After the United States set up its Strategic Bitcoin Reserve, other nations like India, Pakistan, Ukraine, and Ireland are now looking into the idea. In the US, states such as Texas, Arizona, and New Hampshire have already created or are creating their own Bitcoin reserves.
Kazakhstan’s central bank has not given a specific timeline for launching the reserve but confirmed it will work with law enforcement agencies to fund it. The country hopes this step will help it become a leader in crypto within Central Asia.
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