Kazakhstan will form a crypto reserve from confiscated assets.

Key points:

• The National Bank of Kazakhstan (NBK) plans to convert part of the state reserves into cryptocurrencies.
• The state crypto reserve will also be replenished with confiscated crypto assets.
• New forms of mining and purchasing cryptocurrencies through state-owned companies are being considered.

The National Bank of Kazakhstan plans to transfer part of its state reserves into crypto assets. This was announced by NBK Deputy Chairman Berik Sholpankulov during a meeting of the Majilis, the lower house of parliament.

The meeting was devoted to the new law on banking activities and amendments to financial legislation. Deputies asked for clarification on how the country’s crypto reserve would work and what sources it would be formed from.

The basis for the crypto reserve

Sholpankulov recalled that the government is already creating a state crypto reserve. First and foremost, it will be replenished with crypto assets confiscated in criminal cases. They will become part of the strategic reserve. Additional sources of replenishment are also being discussed.

According to Sholpankulov, the possibility of investing part of the National Fund’s assets and gold, and foreign exchange reserves in cryptocurrencies is being considered.

The National Fund of Kazakhstan holds the government’s financial assets and other material values. Its main goal is to support the stable development of the country, create a financial cushion for the future, and reduce dependence on fluctuations in world commodity prices. The fund performs savings and stabilization functions and is managed by the National Bank under a trust agreement with the government.

Other options for purchasing cryptocurrencies

The authorities are also exploring other ways to purchase cryptocurrencies. Kazakhstan is actively developing as a center for the crypto industry after the mass migration of miners from China. This direction is receiving increasing state support.

Sholpankulov noted that the Ministry of Digital Development is considering the idea of launching cryptocurrency mining based on state-owned companies. In addition, enterprises will be able to supply energy and services to private miners, who will pay their bills with crypto assets.

In September, the president of Kazakhstan proposed creating a national digital asset fund to accumulate a strategic crypto reserve. The fund will be formed under the auspices of the National Bank Investment Corporation and will include promising digital assets, confiscated cryptocurrencies, and revenues from state mining.