Kazakhstan's National Bank Develops State Crypto Reserve Framework

Kazakhstan’s National Bank is actively developing a framework to establish a state cryptocurrency reserve, utilizing assets confiscated in criminal cases and coins mined by state-owned operations. This initiative is part of a broader strategy to enhance the country's financial infrastructure and formally recognize digital assets.

The nation’s central bank governor, Timur Suleimenov, stated that the reserve could be managed by a specialized subsidiary focused on alternative investments. The central bank is formulating rules that follow sovereign-wealth best practices, including a single-manager setup, transparent books, and audited, secure storage. Suleimenov asserted that a single custodian protects public assets from the market’s wild swings and security breaches. He anticipates ministries and law enforcement to finalize the framework, but shared no launch date or target size as of publication time.

“The National Bank supports a prudent and institutionally sound approach to forming a state crypto reserve in accordance with the best international practices in managing sovereign funds (including sovereign crypto reserves), ensuring transparency in the accounting and custody of crypto assets, transparency in the ownership of the crypto reserve, and the sustainability of the state crypto reserve,” said Suleimenov. Acknowledging crypto’s high volatility and security risks, he emphasized that placing the reserve under the control of a centralized institution would ensure proper safekeeping and oversight.

“Given the risks and volatility associated with storing crypto assets, a key factor in effectively structuring the management of a state crypto reserve is the centralized institutionalization of such management to ensure the safekeeping of crypto assets,” Suleimenov postulated. The move deepens Kazakhstan’s push into the crypto industry. The nation currently controls approximately 13% of the global Bitcoin hashrate and has disclosed plans to launch “CryptoCity” — a pioneering pilot zone where crypto assets can be used to pay for goods and services.

Kazakhstan's central bank is also working on legislative amendments to formally regulate digital assets, following a directive from the President and involving coordination with other state agencies. The National Bank plans to launch a Digital Asset Regulatory Sandbox, enabling crypto and fintech firms to test new technologies and services under regulatory oversight. In parallel, the government is developing a draft law on the use of artificial intelligence, which includes provisions for administrative and criminal penalties for unauthorized crypto transactions.

The reserve aims to create a sustainable and transparent source of funding, leveraging seized digital assets and tokens mined by state-owned facilities. The central bank is willing to work with lawmakers to craft a crypto reserve legal framework, ensuring the safekeeping of crypto assets despite their high volatility and security risks. This initiative is part of a broader global trend where state-run national crypto reserves are gaining traction, although such initiatives typically only consider Bitcoin.