Kazakhstan will create a state crypto reserve funded by confiscated criminal assets and government-backed mining operations. National Bank Chairman Timur Suleimenov said the reserve will follow global sovereign fund standards, prioritising transparency and sustainability.
The country's rise as a crypto mining hub began in 2021, but stricter regulations and power shortages reduced its global mining share to 4% by 2023.
Authorities now use the '70/30 model', where foreign investment modernises power plants, with 30% of energy output reserved for regulated mining to generate crypto for the reserve.
Legal crypto activity is limited to the Astana International Financial Centre, hosting major exchanges like Binance and Bybit. Non-compliant platforms remain blocked, while reforms aim to license unbacked crypto assets and define their legal status.
Kazakhstan is also pushing forward with broader crypto innovation, including a Solana-backed Web3 zone and the proposed CryptoCity. Despite enforcement progress, most crypto activity still occurs outside regulation. The digital tenge is expected to launch later this year.
