Kazakhstan announces plans to establish a state crypto reserve

Kazakhstan plans to establish a state crypto reserve, contingent on the creation of a legal framework to govern its formation and management.

Kazakhstan’s National Bank is currently working on a detailed concept for forming and managing the reserve, potentially within a bank-affiliated entity focused on alternative investments, National Bank Chairman Timur Suleimenov said in response to a parliamentary inquiry.

Following international practices, Suleimenov implied the reserve will be funded through confiscated crypto-assets or cryptocurrency mined by state-backed operations.

“International practice shows that the sources for such a reserve may include confiscated crypto-assets, as well as cryptocurrencies mined by a crypto miner partially owned by the government.”

However, before the plan can move forward, changes to Kazakhstan’s legislation will be required to define its legal status and set out how the assets can be deposited and used, Suleimenov explained. He added that the National Bank is open to working with members of parliament to develop the necessary legal framework.

This follows Suleimenov’s announcement in early June that the country’s financial regulator is working on legislative amendments to govern the circulation of digital assets, made alongside his warning for citizens to exercise caution when buying cryptocurrencies.

In addition to announcing the formation of crypto reserve, Suleimenov said the National Bank also plans to tighten restrictions on digital asset advertising, especially to protect vulnerable groups from misleading promotions. He raised particular concern about the influence of pseudo-business coaches that promote unrealistic returns from crypto investments.

This is part of Kazakhstan’s broader effort to regulate the crypto market and protect consumers from risky or illegal activities. Since last year, a ban has been in place prohibiting transactions conducted by crypto providers without an AIFC license. To enforce this, the Agency for Regulation and Development of the Financial Market (ARDFM) and the AIFC Committee issue a quarterly list of unlicensed crypto services to banks. In Q1 2025, banks blocked approximately 15,800 transactions worth about $3.07 million linked to these services.

Meanwhile, Kazakhstan is taking steps to ensure that the crypto sector develops within a clear and secure legal framework. In May, Kazakhstan’s National Bank announced plans to begin licensing crypto exchange services that facilitate the conversion of digital assets into fiat.

Additionally, the Solana (SOL) Foundation has recently signed a Memorandum of Understanding with Kazakhstan’s Ministry of Digital Development to promote crypto education, support startups, and advance the tokenization of capital markets within the country.