Kazakhstan has allocated $350 million from its National Fund to develop a national cryptocurrency reserve, as stated by the Deputy Chairperson of the National Bank of Kazakhstan. This fund is designed to manage the resource wealth of the nation, specifically revenues from oil, gas, and minerals. It serves as an economic buffer, ensuring stability during uncertain times.
The initiative is being led by the National Investment Corporation, a branch of the National Bank. Funds have been set aside in a dedicated account at the Central Depository to establish the reserve. Notably, Kazakhstan will not be purchasing cryptocurrencies directly. Instead, the reserve will be created through strategic investments in cryptocurrency-focused hedge funds, with several funds currently under consideration.
Additionally, future plans may include equity investments in venture capital funds associated with digital assets. In an interesting move, the reserve will also incorporate cryptocurrencies seized by law enforcement, likening its approach to practices seen in the United States.
In recent years, Kazakhstan has emerged as a prominent player in the crypto industry, especially since 2022 when it welcomed Bitcoin miners relocating from China. The country has since made significant strides by legalizing cryptocurrency mining and trading, facilitated through the Astana International Financial Centre.
Earlier this year, the President endorsed new legislation aimed at modernizing the banking system and integrating digital finance into the national framework. This development comes on the heels of a significant crackdown on illegal cryptocurrency exchanges within the country, where authorities dismantled around 130 unlicensed platforms that had processed up to $124 million in transactions just last year.
Clearly, Kazakhstan is actively aiming to position itself at the forefront of the cryptocurrency landscape.