Kazakhstan explores cryptocurrency investments as part of national reserves strategy

Kazakhstan is weighing cryptocurrency-related investments as part of its strategy to diversify national reserves and modernise financial management, according to the chairman of the National Bank.

Kazakhstan is considering investing a portion of its gold and foreign currency reserves, as well as assets from its National Fund, into cryptocurrency-related investments, according to Timur Suleimenov, Chairman of the National Bank. The country maintains alternative portfolios for these reserves, following aggressive strategies aimed at maximizing returns.

Suleimenov noted that Kazakhstan has examined the approaches used by sovereign funds in Norway, the U.S., and the Middle East, some of which allocate small portions of their portfolios to crypto assets, ETFs, or shares in companies tied to the crypto industry.

While the central bank has not ruled out investing part of Kazakhstan’s alternative reserve portfolios in crypto-related funds, Suleimenov emphasized that the decision requires caution due to the high volatility of such assets.

“These investments can yield significant returns but are also highly risky, so there is no need to rush,” he said.

In addition, Kazakhstan plans to establish a state crypto reserve to hold digital assets confiscated by law enforcement agencies. Infrastructure is being developed to manage this reserve.

Suleimenov also explained that if state-affiliated enterprises engage in cryptocurrency mining, some of those mined assets may be transferred to the national crypto reserve as taxes or mandatory payments, following practices seen in other countries.

Suleimenov also shared that Kazakhstan intends to strengthen regulation of the crypto market, including introducing administrative and criminal penalties for unauthorized “gray market” crypto transactions. Currently, cryptocurrency trading is permitted only on licensed exchanges within the Astana International Financial Centre (AIFC). The National Bank also plans to tighten restrictions on crypto advertising to better control market activities.

Meanwhile, Kazakhstan’s net international reserves declined by $366 million, or 0.73%, to $49.8 billion in June 2025, marking the second consecutive monthly decrease, according to data from the National Bank.

Gross international reserves, including assets in freely convertible currencies and gold, fell by $282 million, or 0.54%, to $52 billion.

The National Fund, funded primarily by oil revenues, grew by 1% in June to reach $60.3 billion, though Ministry of Finance data indicates an overall decline in the fund’s size.

Suleimenov has repeatedly expressed concern about large withdrawals from the National Fund, warning that these outflows may prevent Kazakhstan from reaching its goal of growing the fund to $100 billion by 2030.

Despite these challenges, the fund’s size remained stable throughout 2024. 

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