Kazakhstan Moves to Establish State-Owned Crypto Reserve Amid Rapid Industry Growth

Kazakhstan is taking significant steps to integrate digital assets into its financial system, with the National Bank endorsing a proposal by lawmakers to establish a state-owned crypto reserve. This initiative represents one of the most concrete efforts by a Central Asian nation to formally incorporate digital assets into state finance.

The draft law on the crypto economy is still pending adoption. However, according to Timur Suleimenov, the head of the National Bank, a working group is already developing a strategy for creating and managing a crypto reserve. The plan involves setting up a new subsidiary of the National Bank, which would focus on non-traditional assets, including digital currencies and blockchain-based investments.

Suleimenov highlighted that international practices suggest potential sources for such a reserve could include confiscated crypto-assets and cryptocurrencies mined by a government-partially owned crypto miner. To implement this, amendments to financial legislation are necessary. These amendments would define the legal status of the crypto reserve, establish rules for depositing and managing it, and outline how the government can utilize it.

As Kazakhstan's crypto industry experiences rapid growth, the government is intensifying measures to combat misuse and illegal transactions. A new bill is in preparation to regulate the use of artificial intelligence (AI) in digital asset trading. This legislation aims to impose administrative and criminal liability for cryptocurrency operations conducted outside state-prescribed formats, thereby limiting the rise of gray markets that have become a concern for regulators.

The new rules will supplement existing laws that only permit crypto trading through licensed platforms operating within the Astana International Financial Center (AIFC). The Agency for Regulation and Development of the Financial Market (ARDFM) and the AIFC Committee maintain a register of unauthorized cryptocurrency firms to enforce this framework. This list is updated quarterly and shared with banks to help them detect and halt suspicious or unlawful activity.

In the first three months of 2025, banks in Kazakhstan froze 15,800 unauthorized crypto transactions valued at approximately $3.07 million. Most of these transactions were related to unauthorized platforms or peer-to-peer trades that did not meet legal requirements. Banks have been instructed to freeze accounts suspected of involvement in the gray market, monitor transaction limits of AIFC-approved exchanges, refuse transfers to unlicensed exchanges, and scrutinize transactions over $1,000 for any signs of illegality.

As Kazakhstan prepares to enter the realm of holding cryptocurrency, top financial officials are cautioning the public about the risks associated with digital assets. In early June, Suleimenov issued a statement warning that cryptocurrencies are not safe savings stores like bank deposits. He emphasized that cryptocurrencies are highly volatile and complex, making them more suitable for experienced investors rather than the general public.

Suleimenov's comments come amid a rise in crypto-related scams, false advertisements, and other deceptive practices targeting young people and those less knowledgeable about personal finance. In response, the National Bank and other state agencies are developing new legal protections to limit the marketing of digital assets. These measures aim to curb false advertising, increase transparency in the sale of crypto products, and protect vulnerable groups, such as young people.