- Kazakhstan is planning a substantial cryptocurrency state reserve using confiscated digital wallets and repatriated crypto holdings.
- They want to mix digital assets with traditional investments, but there should be no direct exposure to cryptocurrencies.
Kazakhstan will set up a national crypto asset fund worth between $500 million and $1 billion hang upwhich will consist of confiscated and repatriated digital assets. The plan, confirmed by National Bank of Kazakhstan (NBK), highlights growing interest in a nationally regulated crypto economy.
The reserve will contain different investment products, including exchange-traded crypto ETFs and stocks of companies active in the digital assets sector. The NBK clarified that the regulator will be “very cautious about direct exposure to cryptocurrencies.” The aim is to combine traditional investments with digital holdings to stabilize the portfolio.
Funding for the initiative will come from multiple sources. Seized cryptocurrencies from criminal cases and funds earmarked for alternative investments will play an important role. NBK boss Timur Suleimenov said in an interview in London:
“I think by the end of the year, January next year, we’ll have it up and running. Everyone will be ready to go.”
Kazakhstan confiscates millions of crypto tokens from criminals
Over the past two years, Kazakh authorities have stepped up their crackdown on illegal crypto activities. During this time, the Interior Ministry processed more than 1,000 criminal cases related to cryptocurrencies. During the investigation, a large amount of digital coins were found that were acquired using illegal methods. The government will now contribute these coins to the national fund.
This year, law enforcement seized $10 million worth of cryptocurrencies linked to a major pyramid scheme and froze $9.7 million worth of Tether linked to a dark web laundering network. Another $17 million was seized from approximately 130 unlicensed exchanges across the country. These recovered funds will now serve as the financial foundation for the state’s new cryptocurrency strategy.
President Kassym-Jomart Tokayev announced the creation of the national reserve in early September arranged. He said publicly:
“A sovereign digital asset fund should be created that will accumulate a strategic cryptocurrency reserve from the most promising assets of the new digital financial system.”
Kazakhstan welcomes engagement from global investors
At the 2025 Kazakh Capital Markets Day in London, Suleimanov gave a detailed economic update. The event, hosted by the Kazakhstan Stock Exchange (KASE) and the Agency for Financial Market Regulation and Development, underscored the country’s ambition to strengthen macroeconomic stability while attracting global investors.
The NBK boss pointed to the bank’s ongoing structural reforms and its focus on financial discipline. He also discussed the digital tenge project (the digital currency of the Central Bank of Kazakhstan) as well as other fintech programs aimed at modernizing the financial sector.
Berik Sholpankulov, the deputy governor of the NBK, later confirmed that part of the money for the reserve could come from the National Fund. This sovereign wealth fund manages gold, foreign currency holdings, and other assets that could soon be converted into cryptocurrency assets.
Kazakhstan began experimenting with state-controlled crypto assets back in September when the Alem Crypto Fund was launched under the supervision of the Ministry of Artificial Intelligence and Digital Development. The program, backed by Binance’s local branch, made its first investment by purchasing BNB tokens.
The relevant authorities assume that the upcoming national crypto reserve will expand the current system. The aim is to manage more assets and put confiscated funds to regular financial use. All of these efforts signal a growing intention to position Kazakhstan as an influential digital financial center in Eurasia.
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