Kazakhstan Plans State Crypto Reserve to Regulate Market

Kazakhstan is set to establish a state crypto reserve, as announced by National Bank Chairman Timur Suleimenov. This initiative is part of a broader effort to regulate the digital asset market and protect citizens from fraud and financial risks. The reserve will be managed by an expert body within the National Bank and funded through seized crypto-assets by the state or mined by state-controlled operations. Suleimenov highlighted that international practices show that such reserves can be funded by confiscated crypto-assets and cryptocurrencies produced by government-engaged crypto miners.

To move forward with this project, Kazakhstan's legislation must be updated to define the legal status of the crypto reserve, its administration, and usage rules. Suleimenov stated that the National Bank is prepared to work with lawmakers to develop the necessary amendments for legislation. This move is part of Kazakhstan’s broader push to bring the market for digital assets under regulation and protect citizens against fraud and financial risk.

In addition to the reserve, new restrictions on crypto advertising have been laid out to prevent misleading promotions, particularly targeting vulnerable individuals. Suleimenov criticized “pseudo-business coaches” for spreading false assurances of crypto investment returns. The country has also imposed a ban on crypto transactions carried out by providers without a license from the Astana International Financial Centre (AIFC). Domestic banks blocked nearly 15,800 illegal crypto transactions worth $3.07 million in Q1 2025. Kazakhstan also intends to license crypto exchanges trading digital assets for fiat currency, further regulating the space.

In a complementary development, the Solana Foundation has signed a Memorandum of Understanding with Kazakhstan’s Ministry of Digital Development. This partnership aims to promote crypto learning, facilitate local startups, and build the tokenization of the capital markets in the country. 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.