A national cryptocurrency reserve fund worth $500 million to $1 billion is being established in Kazakhstan.
According to a Bloomberg article, the fund, which is anticipated to start by early 2026, would be seeded with assets confiscated or returned from overseas as well as revenues from state-backed mining activities.
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Details on the reserve
The fund will invest in exchange-traded funds and cryptocurrency-focused businesses instead of directly holding bitcoin or other tokens.
After years of testing state mining operations and increasing control over private miners, the proposal is Kazakhstan’s most significant step toward institutionalising its crypto policy to date.
In the middle of 2024, Kazakhstan hinted at plans for a state-managed cryptocurrency reserve, with authorities speculating that the fund would include tokens mined from state-run enterprises with wallets that had been confiscated.
The objective, according to the nation’s Agency for Financial Monitoring at the time, was to “repurpose” illegally acquired or seized digital assets into a state reserve to “support economic sovereignty.”
A governmental investment vehicle will oversee the future fund, and once it is operating, it may involve international partners.
Officials allegedly stated that the initiative will run under the Astana International Financial Centre (AIFC), the nation’s primary financial centre for blockchain and fintech development, even though particular administrators have not been identified.
Other developments
The Alem Crypto Fund is Kazakhstan’s first national cryptocurrency reserve. Through a collaboration with Binance Kazakhstan, the fund has chosen BNB as its first digital asset.
The Ministry of Artificial Intelligence and Digital Development created the fund, which is run by Qazaqstan Venture Group. Additionally, they have an Astana International Financial Centre (AIFC) registration.
Additionally, the National Bank of Kazakhstan said in September that it is testing a new stablecoin linked to the Kazakhstani tenge. The Solana blockchain powers the Evo or KZTE token, which was issued by Eurasian Bank and the Intebix exchange.
According to officials, the fund is a big step toward Kazakhstan’s goal of adopting cryptocurrencies and institutionalising them.
The country has taken several steps to incorporate cryptocurrency and guide it with new regulations. This clearly shows that the country is taking an advanced and more balanced step towards regulating digital assets as well as giving them enough recognition at a national level.
The national Crypto reserve is a clear sign that the country refuses to stay behind in the age of digital asset advancement, competing with first-world countries like the USA.
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