Kazakhstan is taking a major step in its crypto strategy. The central bank has confirmed plans to establish the Kazakhstan National Crypto Reserve, making it the first sovereign digital asset reserve in Central Asia.

While national crypto reserves aren’t a new concept globally, Kazakhstan’s approach stands out. Funded through confiscated criminal assets and government-backed mining, the initiative aims to ensure institutional oversight and long-term transparency in digital asset management.

 

Central Bank Takes the Lead

According to the National Bank of Kazakhstan, the reserve will be state-managed and likely operated through a specialized subsidiary. Chairman Timur Suleimenov noted that the primary goal is to ensure institutional soundness and mitigate the inherent risks associated with crypto markets. The initiative will follow international best practices, with a strong focus on transparency, sustainable storage, and proper accounting.

In a formal response to a parliamentary inquiry on May 22, the central bank also emphasized that placing the reserve under a centralized institution allows for effective oversight, aligning with broader financial stability goals.

 

Funding the Reserve: Assets and Mining

The funding model for Kazakhstan’s crypto reserve involves two main sources: confiscated digital assets from criminal investigations and proceeds from government-linked mining activities.

These mining operations fall under the country’s revamped regulatory system, which includes the “70/30 project”. In this model, foreign investors upgrade thermal power stations, allocating 70% of the energy to the national grid and the remaining 30% to mining. This structure not only reduces pressure on the power infrastructure but also ensures state participation in digital asset generation.

The process of building the reserve will involve collaboration between financial institutions, law enforcement, and other relevant state bodies. However, the full mechanics, such as what assets will be included and how they will be stored, are still being developed.

 

From Mining Hub to Regulated Economy

Kazakhstan’s relationship with crypto has evolved rapidly over the past few years. After becoming a top destination for Bitcoin miners in 2021 following China’s crackdown, the country quickly learned the downsides of unchecked expansion, strained energy grids and poor oversight.

By 2023, new regulations drastically reduced Kazakhstan’s share in global mining to just 4%. Today, 415,000 machines are registered, 84 licenses have been issued (with 64 active), and five mining pools have received accreditation. Enforcement has also stepped up, with 36 illegal platforms shut down and over 3,500 unlicensed websites blocked in 2024 alone.

 

Kazakhstan’s Broader Crypto Push

The crypto reserve is part of a larger vision. In May 2025, President Kassym-Jomart Tokayev unveiled plans for CryptoCity, a pilot zone for using cryptocurrencies in daily transactions. Earlier this year, Kazakhstan also launched Solana Economic Zone Kazakhstan, the region’s first Web3 economic hub, in collaboration with the Solana Foundation.

Despite these efforts, challenges remain. Experts estimate that more than 90% of the country’s crypto activity in 2023 took place outside regulatory oversight, totaling over $4 billion in unmonitored transactions.

To address this, Kazakhstan is pursuing legislative amendments to define the legal status of digital financial assets and regulate the circulation of unsecured cryptocurrencies through a licensing regime.

 

Competing in Central Asia

Kazakhstan’s measured, institution-led approach is notably different from neighboring Uzbekistan’s faster embrace of retail crypto adoption. Uzbekistan currently ranks 33rd in the global crypto adoption index, while Kazakhstan holds 57th place.

Still, Kazakhstan appears focused on building a sustainable framework. With plans for a central bank digital currency, the digital tenge, slated to launch this year, the government’s digital ambitions extend well beyond mining or reserves.

 

Olhando para o futuro

Kazakhstan’s national crypto reserve signals a strategic pivot from loosely regulated mining to a more structured, state-managed digital asset ecosystem. While details are still being finalized, the plan reflects growing global interest in sovereign crypto reserves and highlights Kazakhstan’s intent to play a leading role in the region’s digital economy.

The national crypto reserve may not resolve all challenges immediately, but it marks a significant step toward institutional accountability and long-term digital asset policy.