Kazakhstan plans to establish a state cryptocurrency reserve, to be managed by an affiliate of its National Bank. The reserve will be funded through assets confiscated in criminal cases and cryptocurrencies mined by state-owned operations, according to a report by Kazinform, citing National Bank Governor Timur Suleimenov.
The central bank is currently developing regulations for this reserve, aiming to adhere to best practices for sovereign wealth funds. These practices include a single manager, transparent accounting, and audited, secure storage for the digital assets. Suleimenov stated that a single custodian would help protect public assets from market volatility and security breaches. He anticipates that relevant ministries and law enforcement agencies will finalize the framework, though no launch date or target size for the reserve has been announced.
This initiative marks a further expansion of Kazakhstan’s engagement with the cryptocurrency sector. The country accounts for approximately 13% of the global Bitcoin hashrate. In 2022, following power shortages, Kazakh officials seized nearly $200 million in illegal mining equipment and subsequently introduced licensing rules for cryptocurrency miners.
Globally, other public entities are also exploring holding cryptocurrencies. The United States is considering a Strategic Bitcoin Reserve, while Arizona, Ohio, and Texas have already passed legislation allowing them to hold Bitcoin. Beyond government entities, several companies, including MicroStrategy, Metaplanet, and GameStop, have raised capital to acquire Bitcoin for their treasuries. Other firms, such as SharpLink and DeFi Development Corp, have also utilized cryptocurrencies like Ether and Solana for corporate treasury purposes.
