Kazakhstan Allocates $350M to Build National Crypto Reserve

Kazakhstan plans to set up a national crypto reserve by putting $350 million from its National Fund into digital asset investments.

Quick overview

  • Kazakhstan plans to establish a national crypto reserve by investing $350 million from its National Fund into digital asset investments.
  • The reserve will initially invest indirectly in hedge funds focused on crypto, managed by the National Investment Corporation.
  • Future investments may include venture capital funds related to digital assets, and law enforcement may contribute seized crypto assets to the reserve.
  • Kazakhstan aims to strengthen its crypto market and financial systems through strategic investments and regulatory measures.

Kazakhstan plans to set up a national crypto reserve by putting $350 million from its National Fund into digital asset investments. Aliya Moldabekova, Deputy Chairperson of the National Bank, confirmed this plan at the Annual Business Review.

The National Fund manages Kazakhstan’s oil, gas, and mineral revenues and usually serves as a financial safety net during tough times. Now, the fund will help Kazakhstan grow its role in the crypto sector without the government directly buying cryptocurrencies.

Strategic Investment Approach

At first, the new reserve will invest indirectly in hedge funds that focus on crypto. The National Investment Corporation, part of the National Bank, will manage the reserve and is now looking at five funds as possible investments.

The main points of the strategy are:

  • There will be no direct crypto purchases at first.
  • In the future, the reserve may invest in venture capital funds connected to digital assets.
  • Law enforcement may add seized crypto assets to the reserve, using a model similar to the one in the U.S.

This plan aims to reduce risk and help the local crypto market and financial systems grow.

Kazakhstan’s Crypto Ecosystem and Regulatory Push

Since 2022, Kazakhstan has become a regional center for crypto, drawing in Bitcoin miners from China. The government made crypto mining and trading legal through the Astana International Financial Centre, showing its commitment to digital finance.

Other steps include:

  • President Kassym-Jomart Tokayev signed new laws to modernize banking and digital finance.
  • Authorities cracked down on illegal platforms, shutting down 130 unlicensed exchanges last year and stopping $124 million in unregulated transactions.

By using both regulation and strategic investments, Kazakhstan wants to create a safe and lasting foundation for its growing digital economy.

ABOUT THE AUTHOR See More
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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