Kazakhstan to Fund National Crypto Reserve Using Seized Digital Assets

TLDR

• Kazakhstan plans to use digital assets seized from criminals to fund its national crypto reserve.
• The National Investment Corporation will manage the crypto reserve alongside gold and foreign currency assets.
• $350 million in foreign currency and gold has already been set aside for the reserve.
• The NIC will invest in crypto through hedge funds and venture capital funds rather than purchasing cryptocurrencies directly.
• Kazakhstan is building a smart urban hub called CryptoCity to support crypto-based payments and smart technologies.

Kazakhstan plans to bolster its national crypto reserve with digital assets seized from criminals. This move follows the country’s efforts to diversify its reserve portfolio by including crypto assets, alongside traditional reserves like gold and foreign currency. The National Investment Corporation (NIC), which operates under the National Bank of Kazakhstan, will manage these assets.

Kazakhstan to Build Crypto Reserve Fund with Seized Digital Assets

Kazakhstan is using crypto assets seized by law enforcement to fund its national crypto reserve. The National Investment Corporation (NIC) is in charge of this initiative. According to the NIC, the reserve will also include gold and foreign currency, with $350 million already earmarked for the project.

Timur Suleimenov, Chairman of the National Bank, confirmed that the reserve will expand using the seized crypto. He stated, “This initiative will help us build a strong and diversified reserve.” The NIC will invest in crypto assets through hedge funds, routing funds without directly purchasing cryptocurrencies.

The NIC has set up an account at Kazakhstan’s Central Depository to manage crypto-related investments. This account will facilitate indirect investments through hedge funds, which the NIC has shortlisted. The NIC did not disclose the names of the five hedge funds it plans to work with.

As part of the broader strategy, the NIC also plans to invest in crypto-specific venture capital funds. The goal is to create a diversified portfolio that includes both traditional and digital assets. This marks a shift toward incorporating cryptocurrencies into Kazakhstan’s financial strategy.

CryptoCity Plans and Ongoing Digitalization Efforts

Alongside the crypto reserve, Kazakhstan plans to establish a smart urban hub called CryptoCity. This city will integrate smart technologies and enable crypto-based payments for goods and services. President Kassym-Jomart Tokayev confirmed the plan during a speech in September, which emphasized the importance of such initiatives for the country’s future.

Kazakhstan continues to adopt crypto-friendly policies while enforcing regulations against unlicensed operations. Financial authorities have taken measures, including blocking over 1,100 online platforms involved in unauthorized crypto exchanges in 2025.

As part of its digitalization efforts, Kazakhstan’s Astana Financial Services Authority has begun settling regulatory fees using USD-pegged stablecoins. Crypto exchange Bybit has become one of the first agents for this service, further promoting digital asset integration.

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