The national bank of Kazakhstan is National Cryptocurrency Reserve. The initiative follows the May 22 response to the Congressional investigation, and is part of a broader effort to integrate digital assets into the country’s regulated financial framework. Intensive groups control reserves and could be funded by seized digital assets and state-linked crypto mining.
According to a post X from Kashif Raza, Chairman Timur Suleimenov confirmed the support of the central bank and outlined the role of bank subsidiaries managing the preparations under an alternative investment structure.
https://x.com/simplykashif/status/1939643393073926632
Development will develop as Kazakhstan strengthens its involvement in digital finance. In recent months, crypto-related projects have been expanding rapidly, including retail crypto payment systems, crypto pilot zones and infrastructure related to central bank digital tenge.
Crypto-preparation strategies will provide institutional support
The proposed cryptographic protected area of the National Bank will be comprised under centralized supervision to manage volatility and risk. Bank officials confirmed the plan through official documents addressed to Kazakhstan’s parliament. The proposed structure involves the use of subsidiaries focusing on alternative investments to manage crypto holdings.
The source of reserve funds may include expropriated digital assets and revenue from government-related crypto mining operations. Authorities have not confirmed the structure of the protected area or the composition of tokens, but previous international models have prioritized Bitcoin. Kazakhstan’s movements are consistent with this trend, but no specific asset list has been revealed.
This decision follows a pattern of strategic engagement by the state with digital finance. Kazakhstan previously hosted most of its global Bitcoin mining business before implementing stricter rules to eliminate illegal activities. These regulations change have shifted state interest to formal infrastructure and surveillance.
Crypto Project Set for Aratau Development
The government is also planning to launch “Cryptocity,” a dedicated pilot zone for regulated crypto adoption. President Kassym-Jomart Tokayev announced the initiative at Astana International Forum 2025. The project will allow for the use of cryptocurrency in consumer payments, real estate and investment transactions.
The code is planned for Aratau, the southeastern city, which already hosts major scientific institutions. The region includes the Nuclear Research Center, an economic zone focused on innovation, and digital infrastructure under development. Digital Development Minister Zhaslan Madiyev said that Alatau offers natural benefits as a research hub in the country.
Officials say the pilot zone will allow cryptographically to purchase restaurants, cafes and real estate. Crypto-friendly law and open circulation become an important part of the framework. The agency is working on legal adjustments to support the system, with plans to ensure that crypto is treated as a valid payment method within the zone.
Central bank expands its digital payment capabilities
Kazakhstan has also been installed Crypto Card Initiative Expanding the use of regulated cryptography to retail payments. The initiative, announced at Almaty on June 3rd, allows users to connect licensed crypto wallets to standard payment cards. Payments are made in crypto, but merchants receive the Tenge.
This structure is designed to integrate digital assets into existing payment systems without the need for new hardware. The system works by converting crypto into Fiat at the point of sale using a platform licensed by the Astana International Financial Centre (AIFC).
The initiative is part of a larger effort to increase access to digital assets under the supervision of the National Bank. Almaty Launch participants included representatives from local banks, crypto platforms and fintech companies. They discussed additional projects that include tokenized real estate, tenge-backed stubcoins, and a broader asset tokenization scheme.
Stablecoin Pilots and Tokenized Assets are reviewing
The central bank coordinates a series of pilot projects through a regulated sandbox. One focus is the launch of Tenge-backed Stablecoins to resolve transactions that include digital assets. These stability works alongside Digital Tenge, Kazakhstan’s central bank digital currency (CBDC).
Tokenization of physical and financial assets is another major area under review. Plans are underway to create tokenized forms of real estate and securities. These will be integrated into the country’s financial system under strict surveillance from regulators. Cryptocard systems allow for immediate settlement through cooperation between local banks and AIFC crypto providers. Client digital assets are converted during transactions and instantly credited to your Fiat-Linked card account.
Regulatory Sandbox supports Web3 and DAO experiments
Kazakhstan’s central bank supports a wide range of experimental financial models using a regulated sandbox. Chief Digital Officer Binur Zhalenov said the current focus includes developing scalable Fiat-Crypto gateways and Web3 infrastructure. Sandbox also supports a Decentralized Autonomous Organization (DAO) model as part of its long-term plan to modernize Kazakhstan’s financial structure.
The regulator plans to test new payment mechanisms and token systems within the sandbox before implementing them nationwide. Zhalenov has confirmed that the initiative is led by the finest international practices and is tailored to the legal and economic environment of Kazakhstan. Authorities are also evaluating the potential of blockchain-based governance tools for future public-private integration. In addition to innovation, Kazakhstan continues to pursue stricter enforcement of illegal cryptocurrency activities. In 2024, authorities closed 36 unauthorized exchanges.
Regulators coordinate across ministries to support compliance among registered entities, while eliminating unregulated businesses. Kazakhstan’s dual approach aims to promote innovation while increasing surveillance and develop a transparent, secure digital economy. The executive operations are consistent with education and licensing opportunities to bring more actors into the formal sector.
Global movement towards state-owned crypto reserves
Kazakhstan’s announcement follows an international trend to establish government-controlled cryptocurrency reserves. Recent developments include laws Texas approved state-level Bitcoin reserve Proposals for similar pilot programs in India. In the US, Sen. Cynthia Ramis reported that some of the military are interested in Bitcoin reserves.
These reserves are viewed as tools for economic sovereignty and resilience in times of economic disruption. Kazakhstan’s entry into this space connects monetary policy across the country with digital asset infrastructure. The centralized model provides an institutional foundation for future expansion into decentralized technologies and tokenized financial systems.
The national approach focuses on combining state surveillance with blockchain-based systems. The regulatory sandbox model allows limited testing prior to national deployment, but enforcement ensures that market participants remain compliant. Kazakhstan’s financial institutions continue to develop systems that blend digital assets with Fiat Frameworks. These steps form part of a wider movement between governments to formalize its role in the evolving digital asset economy.
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