Kazakhstan Invests $350M in Crypto Using Gold and Fiat Reserves
Kazakhstan has made a significant move in the cryptocurrency sector by allocating $350 million from its gold and fiat reserves. This initiative is overseen by the National Investment Corporation (NIC), a subsidiary of the National Bank of Kazakhstan (NBK).
Kazakhstan’s Crypto Investment Strategy
The investment was announced by NBK Deputy Governor Aliya Moldabekova during the Annual Business Review forum. The central bank plans to initially invest indirectly using hedge funds, rather than direct purchases of crypto assets. Five hedge funds have already been selected for this purpose.
Control Over Seized Digital Assets
Chairman of the NBK, Timur Suleimenov, mentioned that the NIC would also manage digital assets that are seized by law enforcement. Additionally, Kazakhstan’s National Fund—derived from oil and natural gas revenues—will contribute financial resources to this investment strategy.
Creation of a National Crypto Reserve
In November of the previous year, officials in Astana announced plans to establish a national crypto reserve. The central bank disclosed that it aims to hold up to $1 billion in this reserve, which will include government-seized cryptocurrencies and repatriated assets.
- Investment in crypto-based exchange-traded funds (ETFs) and shares of crypto-related companies is planned.
- Up to $300 million is earmarked for short-term crypto investments.
Collaborations and New Funds
In a further development, the Ministry of Artificial Intelligence and Digital Development launched a fund in partnership with Binance. This fund, known as the Alem Crypto Fund, has already made its first investment by acquiring BNB tokens.
Kazakhstan’s Vision for Crypto
Since becoming a mining hub in recent years, Kazakhstan’s government aims to position the nation as a leading crypto hub in Eurasia. They are actively regulating and liberalizing the cryptocurrency market, allowing digital assets to circulate outside the legal framework of the Astana International Financial Center.
Measures Against Illegal Activities
As part of its regulatory efforts, Kazakhstan has taken steps to combat unauthorized crypto activities. President Kassym-Jomart Tokayev noted that over 130 unlicensed exchanges have been shut down, with a total turnover reaching $123 million. The government is also focusing on restricting access to over 1,100 websites offering crypto services without authorization.
Kazakhstan’s proactive approach in investing $350 million in cryptocurrencies reflects its commitment to harnessing the potential of digital assets while ensuring regulatory oversight and compliance.
