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Finance

Kazakhstan Weighs Converting Part of National Fund into Cryptocurrency

Kazakhstan’s monetary authorities are considering the possibility of converting a portion of the country’s National Fund assets and gold and foreign exchange reserves into cryptocurrency. The proposal was announced by Berik Sholpankulov, Deputy Chairman of the National Bank, during a session of the Mazhilis (lower house of parliament). “We are considering the possibility of using part of the National Fund’s assets and gold and foreign exchange reserves for investment in crypto assets,” Sholpankulov stated. He emphasized that any such operations would be conducted solely through a state-managed crypto asset fund, the creation of which is currently under government discussion. “First of all, confiscated crypto assets will be transferred to the state digital asset fund, where they will be stored as a strategic reserve of the government,” Sholpankulov explained. He added that the Ministry of Digital Development has proposed allowing state-owned mining enterprises to supply energy to private mining companies in exchange for payment in cryptocurrency. According to the National Bank, the assets of the National Fund rose by $990 million in September compared to August, reaching $62.7 billion. Gold and foreign exchange reserves increased by $3.1 billion to $57.4 billion. However, foreign exchange assets declined by $1.9 billion to $17.7 billion, while gold reserves grew by more than $5 billion, reaching $39.7 billion. Previously The Times of Central Asia reported that the National Bank had approved a concept for forming a national reserve of crypto assets. The reserve is expected to be managed through a new subsidiary focused on alternative investments. The government is also exploring the establishment of crypto banks and a licensed national cryptocurrency exchange to operate across Kazakhstan. As also previously reported by The Times of Central Asia, authorities have shut down 130 illegal cryptocurrency exchanges suspected of laundering criminal proceeds since the beginning of the year. Virtual assets worth $16.7 million were seized in connection with the crackdown. Sholpankulov previously noted that approximately $15 billion in cryptocurrency has left the country due to gaps in legislation governing digital assets.

Digitalization

Kazakhstan to Establish Ministry for AI Development, Digital Code, and Crypto Asset Fund

In his annual address to the people of Kazakhstan, President Kassym-Jomart Tokayev identified digitalization and artificial intelligence (AI) as key priorities for the country’s development. The president announced a series of institutional and legislative initiatives aimed at positioning Kazakhstan at the forefront of the global technological transformation. Tokayev emphasized that digitalization and AI should form the foundation for modernizing both the national economy and the system of public administration. He instructed the government to establish a dedicated ministry to oversee the development and regulation of artificial intelligence tools. “The new ministry should be headed by a specialist at the level of deputy prime minister,” Tokayev said. Currently, the Ministry of Digital Development, Innovation, and Aerospace Industry is the state body responsible for digitalization in Kazakhstan. The new ministry is expected to be created on its basis. In addition, Tokayev called for the development of a dedicated legal framework to support the large-scale adoption of AI. “The government is tasked with ensuring the total implementation of artificial intelligence to modernize all areas of the economy. As a first step, the adoption of the Digital Code should be accelerated,” Tokayev stated. According to Tokayev, the Digital Code will serve as a foundational document outlining Kazakhstan’s strategic directions for digitalization. It will address issues related to artificial intelligence, the platform economy, big data usage, and other areas central to integrating Kazakhstan into the global digital economy. Tokayev also announced plans to establish a state fund for digital assets, based on the investment corporation of the National Bank. “This fund will accumulate a strategic crypto reserve from the most promising assets of the new digital financial order,” he explained. He stressed the urgency of building a comprehensive ecosystem for digital assets and highlighted the importance of integrating the digital tenge, recently launched in Kazakhstan, into financing mechanisms provided by the National Fund. "Despite global instability, we have taken a decisive step into the era of total digitalization and artificial intelligence. My main mission is to ensure the stable socio-economic development and security of Kazakhstan in these turbulent and dangerous times,” Tokayev said. “The rapid development of artificial intelligence is already influencing people’s worldviews and behavior, especially among young people. There is no alternative, as this process is radically changing the world order and the way of life of all humanity. Therefore, I have set the strategically important task of transforming Kazakhstan into a fully-fledged digital country within three years." As previously reported by The Times of Central Asia, Kazakhstan in July launched alem.cloud, the most powerful supercomputer cluster in Central Asia, designed to support the development and implementation of artificial intelligence technologies.

Cryptocurrency

Kazakhstan Sets Sights on Becoming Central Asia’s Blockchain Hub

Kazakhstan is accelerating its efforts to become a regional leader in blockchain and cryptocurrency. Among its latest initiatives is a proposal by the National Bank of Kazakhstan (NBK) to establish a state crypto reserve. National Strategy and Regulatory Evolution The NBK recently endorsed the idea of forming a national reserve of crypto assets. This was confirmed in an official response from NBK Chairman Timur Suleimenov to a parliamentary inquiry. The proposal includes creating the reserve through a subsidiary of the NBK focused on alternative investments. Mirroring practices in countries such as the United States, the reserve could be composed of confiscated crypto assets and cryptocurrencies mined with state involvement. Legislative amendments to support this move are expected. In January, President Kassym-Jomart Tokayev underscored the urgency of developing Kazakhstan’s crypto infrastructure, citing a global shift toward digital assets. Tokayev emphasized the need for a comprehensive national strategy to meet emerging challenges. Currently, legal cryptocurrency transactions in Kazakhstan can only occur via exchanges operating under the Astana International Financial Center (AIFC). Registered participants include major platforms such as Binance and Bybit. Expanding Infrastructure and Innovation The government is also considering the creation of crypto banks, which would regulate the digital asset market, facilitate storage and transactions, and boost the financial ecosystem. These institutions are seen as critical to fostering IT sector growth and blockchain compliance jobs. There are also plans to establish a licensed national cryptocurrency exchange that would operate nationwide beyond the AIFC. In May, Kazakhstan announced the launch of a special CryptoCity zone to pilot cryptocurrency-based payments for goods and services. The following month, five banks, Halyk Bank, Forte, Freedom, RBK, and Altyn, joined a NBK pilot program to introduce crypto cards. These cards, linked to wallets on AIFC-registered exchanges, allow for the real-time conversion of crypto into tenge for payments and cash withdrawals, including at physical retail terminals. Mining: Prospects and Pressure Kazakhstan has had a complex relationship with cryptocurrency mining. Between mid-2021 and early 2022, the country ranked third globally in Bitcoin mining, driven by low energy costs and an influx of miners from China. At its peak in January 2022, Kazakhstan accounted for 13.22% of global mining power. However, the surge in mining led to severe energy shortages. While enthusiasm for mining has returned, President Tokayev called in March 2025 for renewed investment in digital mining infrastructure. First Deputy Minister of Digital Development Kanysh Tuleushin has championed state-regulated mining as a potential revenue source and a catalyst for modernizing the energy grid. He pointed to models such as the U.S., where miners help balance grid loads, and to Kazakhstan’s “70/30” initiative, which allocates 30% of newly modernized thermal power plant capacity to miners and 70% to the national grid. Tuleushin also emphasized the potential for repurposing associated petroleum gas to generate mining power, thereby reducing emissions and monetizing a previously wasted resource. He argued that legalizing crypto activity nationwide could transform Kazakhstan into Central Asia’s crypto leader, on par with emerging markets in Uzbekistan and Kyrgyzstan. Energy...

Finance

Binance to Assist Kyrgyzstan in Developing Blockchain Infrastructure and Crypto Assets

Kyrgyzstan’s National Investment Agency has signed a Memorandum of Cooperation with Changpeng Zhao, founder of Binance, the world’s largest cryptocurrency exchange by trading volume. According to the agency, Binance will assist Kyrgyzstan in several key areas, including the development of blockchain infrastructure and the creation of a national cryptocurrency reserve. The partnership will also focus on training young professionals, government employees, and specialists in blockchain technologies, virtual asset management, and cybersecurity. In addition, Binance will provide support in establishing a management system for virtual assets and blockchain technology in Kyrgyzstan source. While public interest in cryptocurrencies continues to grow in Kyrgyzstan, the market remains poorly regulated. Earlier this year, the Ministry of Economy and Commerce proposed legislation to create licensed crypto banks that would offer regulated banking services related to digital assets. The ministry stressed the need to integrate crypto assets into the national financial system, citing the rapid advancement of digital technology and the economic potential of legalizing cryptocurrency transactions. The introduction of crypto banks is expected to increase transaction volumes, boost tax revenues, and create new jobs in the fintech sector, positioning Kyrgyzstan as a regional hub for financial innovation. In a separate move to stabilize the sector, Kyrgyzstan’s Cabinet of Ministers significantly raised the minimum authorized capital required for crypto exchanges, from 100 million KGS to 10 billion KGS, a hundredfold increase. The Ministry of Economy and Commerce, which initiated the reform, stated that the measure is designed to ensure the financial stability of crypto platforms, safeguard user interests, and foster a transparent and secure virtual assets market. Existing exchanges have until January 1, 2026, to comply with the new capital requirements.