The Central Asian country is preparing to launch a state cryptocurrency fund using confiscated assets and profits from state-run mining operations.
Kazakhstan is set to establish a national digital asset fund. According to Bloomberg, the fund will have a capitalization between $500 million and $1 billion and is expected to be operational by early 2026.
Funding for the Kazakh government fund will come partly from digital assets seized by authorities or repatriated from abroad, along with profits generated by state-managed mining operations.
The fund will not directly purchase bitcoin or other cryptocurrencies. Investments will be directed toward exchange-traded funds (ETFs) and shares of companies involved in the digital asset sector.
By mid-2024, Kazakhstan had already announced its intention to create a state-managed digital asset reserve. At the time, the country’s Financial Monitoring Agency stated that the goal was to “convert” illicitly obtained or confiscated digital assets into a state reserve to “support economic sovereignty”.
Management of the fund will be entrusted to a state investment vehicle, with the possibility of including foreign partners once the fund is fully operational.
Although specific managers have not yet been appointed, government sources confirmed that the program will operate under the supervision of the Astana International Financial Centre (AIFC), the country’s main financial hub for the development of the crypto and fintech industry.
