Kazakhstan Plans National Crypto-Asset Reserve

The National Bank of Kazakhstan has expressed support for a parliamentary proposal to establish a national crypto-asset reserve, with development work already underway to determine the reserve’s management and structure. In response to a parliamentary inquiry, National Bank Chairman Timur Suleimenov confirmed the initiative, suggesting that the reserve could be managed by a National Bank subsidiary specializing in alternative investments.

Suleimenov highlighted that international practices show that the sources for such a reserve may include confiscated crypto-assets and cryptocurrencies mined by a government-partially owned crypto miner. The implementation of the crypto reserve would necessitate changes to existing legislation to formally define its legal status and to regulate the procedures for its deposit and utilization. Suleimenov emphasized the National Bank’s readiness to collaborate with lawmakers to develop the necessary legal framework.

In addition to the crypto reserve, the National Bank is working on a draft law concerning the use of artificial intelligence. This law will introduce both administrative and criminal liabilities for conducting crypto-related transactions outside the regulated environment. Only approved platforms based in the Astana International Financial Centre are officially allowed to trade cryptocurrencies in Kazakhstan. Transactions involving Bitcoin and other cryptocurrencies would be handled by the cards.

Suleimenov also warned about the risk of “pseudo-business coaches,” who deceive the public, particularly youngsters, by promising them rapid returns on cryptocurrency investments. The establishment of a state crypto reserve is a significant step for Kazakhstan, which has been actively exploring the potential of digital currencies. The move aligns with the country's efforts to diversify its economy and reduce its reliance on traditional financial systems. By leveraging confiscated crypto-assets and government-mined coins, the National Bank aims to create a sustainable and secure reserve that can support future economic initiatives.

The National Bank of Kazakhstan's plan to launch a state-backed cryptocurrency reserve is contingent on the successful implementation of the necessary legal and regulatory frameworks. The central bank is committed to ensuring that the reserve operates transparently and efficiently, with a focus on mitigating risks and enhancing the overall stability of the financial system. This initiative is expected to position Kazakhstan as a leader in the adoption of digital currencies, paving the way for further innovation and development in the financial sector.