National Bank of Kazakhstan has embraced a proposal from parliamentarians to establish a state-managed crypto-asset reserve. Led by Chair Timur Suleimenov, the bank is currently developing a blueprint for how the reserve would fit into a broader investment strategy—within a National Bank subsidiary specialized in alternative assets.
Funding the Reserve: Confiscated Assets and State Mining
Suleimenov said that the reserve’s financing could come from confiscated cryptocurrencies recovered by law enforcement actions, as well as proceeds from governmental shared interests in a crypto-mining venture. This partly follows international examples, where confiscated or otherwise earned digital assets through state avenues are redirected to sovereign investment funds.
Legal Framework & Institutional Oversight
The central bank feels that financial legislation as it currently exists does not define digital reserves, this has caused effective legislation reform in consideration. The current proposed amendments to a digital reserve legislation would clarify the legal status of the digital reserve, a course of action for making deposits in crypto, and a process for the withdraw processes. Once the status is established, the reserve would be administered by a newly designated unit of the National Bank, which would have regular internal audits, reporting obligations, and risk management practises. These proposed amendments are actively being deliberated with MPs, and would require new parliamentary approval.
AI Laws and Gray-Market Crackdown
To bolster governance, the National Bank is also co-developing legislation addressing AI-assisted gray-market trading, which would introduce administrative and criminal liability for unlicensed crypto transactions. This policy aligns with the growing clampdown on unauthorized activities: since 2024, only crypto trading on licensed exchanges within the Astana International Financial Centre (AIFC) is permitted. Regulators such as the Agency for Regulation and Development of the Financial Market (ARDFM) and AIFC maintain quarterly updates of banned platforms, and banks are mandated to block suspicious transactions, accounts, and marketing.
Enforcement in Action: Blocking Illegal Trades
Efforts to stem the gray market are yielding results. In Q1 2025, banks halted approximately 15,800 dealings tied to unlicensed services—suppressing roughly US $3.07 million in transactions. Further enforcement includes freezing P2P accounts, rejecting transfers above ¥ ₹ $1,000 destined for non-AIFC platforms, and flagging unusual payment activity to protect the integrity of regulated crypto channels.
Crackdown on Illegal Exchanges
Authorities have also aggressively pursued unregulated exchanges. In 2024, Kazakhstan dismantled 36 illegal trading platforms with a combined turnover of around US $113 million and confiscated nearly 4.8 million USDT. Beyond this, a broader campaign shut down over 3,500 illicit online exchanges, motivated by concerns over money laundering and financial crime. This shows a clear regulatory message: only licensed AIFC services are legitimate within Kazakhstan.
Formal Exchange Landscape and FinTech Sandbox
Kazakhstan’s regulated market now includes two fully licensed crypto exchanges—Binance Kazakhstan and Bybit—with another eight operating in the AIFC’s FinTech Lab sandbox, including ATAIX Eurasia and Whitebit. Meanwhile, reforms introduced by Deputy Governor Berik Sholpankulov are broadening the oversight framework: defining digital asset status, licensing providers, and enabling testing of new technologies via a regulatory sandbox.
Citizen Guidance & Market Risks
As regulation tightens, Suleimenov has cautioned that cryptocurrencies are highly speculative, not bank-grade savings instruments. He urged citizens—especially young or inexperienced investors—to view them cautiously and await better protections. Upcoming legal measures are intended to crack down on deceptive “business coaches” and curb misleading investment ads, offering stronger protection for consumers.
Strategic Outlook: Navigating Innovation and Stability
Kazakhstan’s push to create a state crypto reserve reflects a balanced strategy: embrace innovation, while reinforcing legal guardrails and weeding out rogue activity. Techniques like funneling confiscated assets and mined earnings into a formally managed reserve illustrate a novel form of sovereign wealth diversification. If legal reforms and regulatory enforcement stay on track, Kazakhstan could set a precedent in Central Asia for integrating crypto assets into fiscal policy—unlocking potential growth, while keeping volatility in check.