Key takeaways
Kazakhstan’s crypto reserve will be funded by confiscated digital assets and state-run mining operations.
The National Bank will retain centralized oversight to ensure security, risk management and regulatory compliance to address volatility concerns.
It is part of a national strategy to modernize Kazakhstan’s financial system and position the country as a regional leader in digital assets and crypto innovation.
Kazakhstan is pushing forward with comprehensive frameworks and piloting schemes like Cryptocity to encourage adoption by the nation’s population.
Kazakhstan is capturing the attention of the world as it emerges as an unlikely pioneer in sovereign crypto adoption. The Central Asian nation is signaling bold ambitions in repositioning its economic future.
The Kazakh National Bank announced plans in June 2025 to establish a state-managed crypto reserve. This would position the country as one of the first to formally introduce digital assets at a government level.
Kazakhstan’s crypto reserve plan
Timur Suleimenov, the National Bank chairman, confirms that legislators are developing a complete framework for creating and managing a national reserve. The plan is to fund it through confiscated digital assets seized by law enforcement. Adding to this, it will be bolstered through state-run crypto mining operations.
The dual approach to funding the reserve is a distinct plan to provide a robust source of growth to the stockpile without exposing taxpayers to the risks.
The proposed Kazakhstan crypto reserve will operate under the supervision of the National Bank, with Suleimenov explaining that it will require careful management of crypto’s high volatility and security risks.
Source: Mazhilis of the Parliament of the Republic of Kazakhstan
“Given the risks and volatility associated with storing crypto assets, a key factor in effectively structuring the management of a state crypto reserve is the centralized institutionalization of such management to ensure the safekeeping of crypto assets,” Suleimenov said.
“The National Bank supports a prudent and institutionally sound approach to forming a state crypto reserve in accordance with the best international practices in managing sovereign funds (including sovereign crypto reserves), ensuring transparency in the accounting and custody of crypto assets, transparency in the ownership of the crypto reserve and the sustainability of the state crypto reserve,” he added.
Did you know? In the first quarter of 2025, Kazakhstan’s banks blocked 15,800 unauthorized crypto transactions with a total value of $3.07 million. Authorities were cracking down on unlicensed exchanges and other illicit activity as they rein in criminal behaviour with crypto.
From Kazakhstan crypto mining to Kazakhstan’s Bitcoin strategy
Kazakhstan isn’t a newcomer to crypto. The country’s journey is well noted, even before its crypto reserve announcement. Its strategies in digital asset management have quickly transformed the country from an opportunistic mining hotspot into a strategic crypto player on the world stage. This hasn’t occurred by accident.
In 2018, crypto mining was booming with the country’s largest Bitcoin mines buzzing deep into the rust belt in the city of Ekibastuz. The deep coal reserves and an energy surplus left over from the collapse of the Soviet Union made it fertile ground for dozens of mining operations.
This ‘hashrate goldrush’ didn’t go unnoticed, and by 2021, Kazakhstan had grown to become second in the world for hashrate, the amount of computing power used to mine Bitcoin (BTC).
Unfortunately, the growth wasn’t sustainable, with mining accounting for 7% of the country’s total power supply. The created tensions and mass protests as the surges pushed the national grid into deficits and blackouts. Within weeks, the government cut miners off from the grid, bringing the industry to a halt.
Did you know? A new 70/30 energy project in Kazakhstan means that 70% of new thermal power plant capacity will be allocated to the national grid, while 30% is reserved for crypto mining to support both sides of the energy infrastructure.
Kazakhstan cryptocurrency regulation and infrastructure foundation
The country has since created reforms to regulate the industry, which is generating impressive results that underpin the feasibility of a strategic reserve. In 2025, miners are required to sell 75% of their assets via Astana International Financial Centre (AIFC) exchanges.
Revenue from the AIFC exchanges surged to over $1.4 billion in 2024, and the mining sector has contributed $34.6 million in the past three years.
This shows a robust foundation for the expansion of sovereign-level crypto management. Regulators have already issued 84 licenses and 415,000 mining device registrations.
In May, President Kassym-Jomart Tokayev also announced plans to encourage crypto adoption through physical infrastructure. The plans include a Kazakhstan “CryptoCity” where a pilot scheme will allow people to pay for goods and services using cryptocurrencies.
The first vice-minister of digital development, Kanysh Tuleushin, said that the country wants to become a leading “crypto hub,” with crypto revenues offering the potential to add hundreds of billions to the country’s coffers.
Did you know? During 2024, 36 unauthorized crypto platforms were shut down with a turnover of $118 million. This led to $4.8 million in frozen assets and 3,500 unlicensed crypto websites being blocked.
Global context: Following the strategic reserve trend
Kazakhstan’s initiative joins the global trend of countries eyeing strategic crypto adoption. The United States is a leading example that already holds 200,000 BTC from criminal seizures. President Donald Trump has also announced plans to bundle these assets into a US national Bitcoin reserve.
El Salvador famously pushed forward with a bold Bitcoin legal tender experiment, but the move faced strong criticism from international financial institutions like the IMF and World Bank. Under pressure and amid economic headwinds, the country has since scaled back its legal tender experiment, with Bitcoin no longer holding the same status in day-to-day transactions.
Despite this, El Salvador continues to accumulate Bitcoin via dips, supports geothermal-powered mining and has launched a Bitcoin treasury management office to handle its holdings. While the legal landscape has softened, the country remains symbolically committed to crypto as part of its financial identity, albeit in a less radical and more reserved capacity.
Meanwhile, Bhutan quietly scaled its mining capabilities in partnership with foreign tech firms, leveraging hydroelectric power to accumulate crypto reserves in stealth. The kingdom’s cautious, low-profile build-up contrasts sharply with Kazakhstan’s more visible, regulated push.
As more nations test the waters of sovereign crypto holdings, Kazakhstan is carving out a unique niche: a tightly regulated, state-driven crypto economy that blends enforcement, industrial mining and public infrastructure pilots. Unlike El Salvador’s all-in approach or the US’s accidental accumulation through seizures, Kazakhstan’s play appears deliberate, technocratic and regionally strategic.
How Kazakhstan’s crypto policy compares to its neighbors
Kazakhstan’s crypto reserve initiative positions it far ahead of its Central Asian peers in terms of digital finance ambition and infrastructure maturity.
Here’s how it stacks up:
Uzbekistan: Uzbekistan legalized crypto trading through licensed exchanges in 2023 and allows mining, but only with solar energy. While it’s built a modest digital asset regulatory framework, its policies remain investor-focused, lacking the state-driven reserve strategy seen in Kazakhstan. The country has yet to implement sovereign crypto holdings or wide-scale infrastructure projects akin to CryptoCity.
Kyrgyzstan: Kyrgyzstan has shown interest in crypto mining due to its surplus hydroelectric power. However, government support remains lukewarm, and no formal regulatory framework exists to manage crypto reserves or encourage mass adoption. Compared to Kazakhstan’s structured approach, Kyrgyzstan is still in a wait-and-see phase.
Russia (regional superpower): Russia’s stance is more complex. While the government legalized crypto mining and is actively working on a digital ruble (CBDC), it remains hostile toward decentralized crypto adoption. Russian authorities have warned citizens about risks and frequently block crypto exchanges. Kazakhstan, in contrast, has chosen regulated integration over prohibition, positioning itself as a more flexible and business-friendly environment for digital assets.
China (major economic influence): China’s sweeping ban on crypto trading and mining in 2021 stands in stark contrast. While it leads in CBDC deployment with the digital yuan, Beijing remains firmly opposed to decentralized assets.
Kazakhstan’s openness makes it an attractive option for displaced miners and crypto firms seeking a base in Asia, occupying a strategic middle ground between open markets and authoritarian control.