Kazakhstan plans a State Fund of Digital Assets to build a strategic crypto reserve, President Kassym-Jomart Tokayev announced in his annual state of the nation address.
Tokayev proposed creating the fund “on the basis of the National Bank’s Investment Corporation” to accumulate a strategic reserve of promising cryptoassets that would sit alongside existing national financial instruments. The move signals a formal push to centralize the state’s exposure to digital finance.
Crypto adoption in Kazakhstan has expanded quickly. A KPMG Caucasus and Central Asia report shows ownership rose from 4% in 2022 to 8% in 2024. Licensed firms operating in the Astana International Financial Centre paid about $367,000 in taxes in the first eight months of 2024, up from $275,000 for the same period in 2023. Separately, crypto mining contributed approximately $10.4 million in taxes over ten months, after $16.4 million the year before. Kazakhstan became a major bitcoin mining hub after China’s 2021 crackdown, though significant mining remains unlicensed.
The government is also weighing broader uses of crypto, including investing national reserves — a policy move echoed by a few other countries. Tokayev tied digital finance plans to Kazakhstan’s urban agenda, outlining Alatau City, a planned $7.2 billion smart city near Almaty that he said should be “the first fully digitalized city in the region,” with options for crypto payments.
At the same time, Tokayev warned of rising online fraud and cybercrime. He announced steps such as an anti-fraud center, expanded biometric ID systems and tighter oversight of banks and telecoms, stressing that preventing cybercrime will require ongoing legal and enforcement upgrades.
Why it matters: A state-controlled crypto reserve would formalize Kazakhstan’s role in digital assets but raises questions about market risk, custody, regulatory clarity and the social implications of rapid digitalization. Policymakers will need clear custody arrangements, robust anti-fraud measures and transparent governance to reduce risks to public finances.
Source: Decrypt. Read the original coverage for full details.