Kazakhstan Proposes State Digital Asset Fund to Bolster Crypto Reserves

Kazakhstan President Kassym-Jomart Tokayev has unveiled plans to establish a State Fund of Digital Assets, aiming to consolidate the nation's strategic crypto reserves. The initiative, announced during his annual address, reflects growing institutional recognition of digital assets in Central Asia.

Crypto adoption in Kazakhstan has surged, with ownership doubling from 4% to 8% of the population between 2022 and 2024. Licensed providers under the Astana International Financial Centre contributed $367,000 in taxes during the first eight months of 2024—a 33% increase from 2023 figures. Mining operations have generated an additional $10.4 million in state revenue.

The proposed fund will operate under the National Bank's Investment Corporation, curating a portfolio of promising digital assets. This MOVE coincides with broader efforts to integrate crypto payments into the country's smart city infrastructure, though Tokayev cautioned about rising cryptocurrency-related fraud risks.