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- The central bank sets aside $350 million for a national crypto reserve.
- Seized crypto, gold, and foreign currency will fund the program.
- President orders stronger action against illegal crypto exchanges.
According to the report, Kazakhstan has launched a new phase in its digital asset policy. The National Bank has approved an initial $350 million allocation to support a state-backed crypto reserve. Officials aim to regain control of the sector while limiting risk.
The plan reflects lessons learned from past instability and energy stress. Authorities now want structure, oversight, and long-term value. The National Investment Corporation leads the initiative. It operates as the investment arm of the central bank.
The corporation will combine foreign currency reserves, gold holdings, and crypto seized during criminal investigations. Law enforcement agencies will transfer confiscated digital assets into the reserve. The bank has already earmarked $350 million worth of overseas currency and gold. This amount forms the foundation of the fund.
Corporation Opens Crypto Investment Account
The corporation has opened a dedicated account for crypto-related investments at the Central Depository. The step adds transparency and control. At this stage, the corporation does not plan to buy or store crypto directly.
It will gain exposure through hedge funds instead. Officials have shortlisted five hedge funds with experience in crypto markets. They did not disclose the names. The approach reduces operational risk and limits volatility exposure.
The corporation also plans to invest in venture capital funds that focus on crypto and blockchain firms. This strategy supports technology development and diversifies returns. It also shifts attention away from short-term price swings toward long term infrastructure growth.
Kazakhstan once stood as a major global crypto mining hub. That status changed in 2022. Power shortages spread across several regions. Public frustration grew. Authorities blamed miners for straining the electricity grid. The government shut down many mining operations and imposed stricter rules.
Since then, officials have reworked their approach. They now favor controlled participation over rapid expansion. The new reserve fits this policy shift. It allows state involvement without reopening pressure on energy systems.
Kazakhstan Cracks Down on Illegal Crypto Exchanges
Market timing also plays a role. The crypto surge of 2025 has faded. Prices have cooled. Trading activity has slowed. Officials appear willing to build during the downturn. They see value in preparation rather than speculation.
President Kassym Jomart Tokayev has ordered stronger enforcement against illegal crypto activity. Authorities have shut down 130 unlicensed exchanges. These platforms generated about $124 million in combined revenue. Investigators have seized assets worth more than $5 million.
The president has warned that illegal crypto operations enable money laundering and capital outflows. He has called these practices a threat to economic security. Despite enforcement actions, online ads for cash to crypto services still circulate.
Convictions remain limited. Officials now aim to close gaps in enforcement. Seized assets may strengthen the new reserve. The policy turns past violations into future resources. Kazakhstan now seeks control, discipline, and credibility in its crypto strategy.
Also Read: Metaplanet Lifts Bitcoin Income Forecast to ¥8.6B After Strong Q4 Results
