Kazakhstan has officially revealed its intention to create a state cryptocurrency reserve, with National Bank Chairman Timur Suleimenov announcing that confiscated criminal assets and state-funded mining initiatives will primarily finance this endeavor.
Suleimenov indicated that the reserve will adhere to global best practices in sovereign fund management, prioritizing fundamental principles such as institutional stability, transparent accounting, secure storage, and sustainability.
BREAKING: KAZAKHSTAN TO LAUNCH A STRATEGIC #BITCOIN RESERVE
NATION STATE FOMO IS HERE pic.twitter.com/DioOMmwTkn
— The Bitcoin Historian (@pete_rizzo_) June 30, 2025
The precise methods for establishing the state crypto-reserve will be developed in partnership with law enforcement agencies and relevant state entities, positioning Kazakhstan as the inaugural Central Asian country to introduce such a sovereign digital asset reserve.
From Mining Haven to Regulated Digital Asset Hub
Kazakhstan’s transformation began in 2021, following the migration of Chinese mining operations due to regulatory crackdowns, enabling the nation to capture 27% of the global Bitcoin mining market.
The lure of inexpensive electricity and lax regulations initially drew miners to Kazakhstan; however, this surge created significant stress on the national power infrastructure and revealed critical legal deficiencies.
By 2023, stringent new regulations had curtailed mining activities to just 4% of the global total.
In response, authorities registered 415,000 mining machines, issued 84 licenses—of which 64 are currently active—and accredited five mining pools as part of a comprehensive licensing framework.
Enforcement agencies demonstrated their effectiveness by shutting down 36 unauthorized operations valued at $118 million in 2024, while also blocking over 3,500 unlicensed cryptocurrency websites.
Kazakhstan regulator quoted that several illegal exchanges have recently played a key role in money laundering schemes.#KazakhstanCrypto #CryptoExchanges https://t.co/hN5CHiRbSp
— Finance Newso.com (@Finance Newso) January 8, 2025
Advanced mining activities now function under the innovative “70/30 project,” wherein foreign investors finance upgrades to thermal power plants. Seventy percent of this capacity is allocated to the national grid, while the remaining 30% is reserved for miners, balancing previous grid pressures while generating state-backed digital assets for the developing reserve.
The legal trading landscape is largely concentrated in the Astana International Financial Centre, which operates under its own regulatory scheme and has attracted significant exchanges like Binance and Bybit.
@binance_kz and @Bybit_Official are on the brink of becoming the country’s first regulated Digital Asset Trading Facilities (DATFs) in Kazakhstan after receiving full authorization from the Astana Financial Services Authority! #Binance #Bybit…https://t.co/hAo1DizcAP
— Finance Newso.com (@Finance Newso) September 6, 2024
In contrast, non-compliant platforms such as Coinbase and Kraken continue to face operational limitations.
Deputy Governor Berik Sholpankulov further confirmed that new legislative changes will facilitate the launch of legally recognized digital financial assets and regulate unsecured cryptocurrency transactions via licensing.
Strategic Positioning Amid Regional Competition
Kazakhstan’s cautious regulatory stance sharply contrasts with its neighbor Uzbekistan, which has swiftly embraced cryptocurrencies, fostering unique competitive dynamics within Central Asia’s emerging digital economy.
Uzbekistan currently ranks 54th in the global crypto adoption index, poised to rise to 33rd by 2024, while Kazakhstan has incrementally progressed to the 57th spot.
This strategy underscores Kazakhstan’s commitment to institutional oversight and regulatory complexity, compared to Uzbekistan’s broader focus on retail adoption.
Moreover, Kazakhstan’s digital aspirations extend well beyond mining and reserves. The country has initiated the Solana Economic Zone Kazakhstan in collaboration with the Solana Foundation, marking the establishment of Central Asia’s inaugural Web3-oriented economic zone.
Kazakhstan and @SolanaFndn announce the Solana Economic Zone, advancing digitization and capturing institutional interest. #Solana #Kazakhstan https://t.co/YC9ubY89L9
— Finance Newso.com (@Finance Newso) June 23, 2025
President Kassym-Jomart Tokayev also unveiled plans for “CryptoCity,” a pilot area where cryptocurrencies could facilitate everyday transactions, underscoring the government’s dedication to integrating crypto into daily life.
The proposed crypto banking system aims to provide comprehensive services, including digital asset trading, storage, and transaction processing within regulated frameworks.
Prime Minister Bektenov highlighted the importance of banks in combating money laundering and ensuring compliance with anti-terrorism financing regulations.
Nevertheless, despite these enforcement measures, experts estimate that 91.5% of crypto-related activities in 2023 transpired outside of regulatory oversight, resulting in an estimated transaction volume of approximately $4.1 billion.
The development of Kazakhstan’s central bank digital currency is set to continue, with the launch of the digital tenge anticipated in the near future.
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