Kazakhstan Allocates $350 Million for National Crypto Reserve

Kazakhstan has earmarked $350 million from its National Fund to develop a national crypto reserve, as announced by Aliya Moldabekova, Deputy Chairperson of the National Bank of Kazakhstan, during the Annual Business Review.

The National Fund, designed to manage the nation's natural resource wealth, generates revenue from oil, gas, and mineral extraction, serving as a fiscal buffer during economic stress.

The National Investment Corporation, a branch of the National Bank, is tasked with establishing the national crypto reserve. Local media report that $350 million has been allocated to a dedicated account at the Central Depository.

Rather than direct cryptocurrency purchases, the reserve will initially invest in crypto-focused hedge funds, with five funds currently under consideration.

The central bank is also exploring equity investments in venture capital funds related to digital assets at a later stage.

Additionally, the reserve will be supplemented by crypto assets seized by law enforcement, mirroring practices in the United States.

Since 2022, Kazakhstan has positioned itself as a regional crypto hub, attracting Bitcoin miners relocating from China and legalizing crypto mining and trading through the Astana International Financial Centre.

Earlier this year, President Kassym-Jomart Tokayev enacted reforms to modernize Kazakhstan’s banking system and integrate digital finance into its national framework.

This announcement comes after a crackdown on illegal crypto exchanges, with authorities shutting down 130 unlicensed platforms that processed $124 million in transactions last year.