Kazakhstan to Create National Crypto Reserve

Kazakhstan plans to establish a national cryptocurrency reserve managed by an affiliate of the National Bank. This reserve will be funded by assets seized in criminal investigations and cryptocurrency mined by state-owned enterprises, as reported by Central Bank Governor Timur Suleimenov via Kazinform. The regulatory framework under development aims to adhere to sovereign-wealth best practices, featuring a single management entity, transparent financial records, and secure, audited storage. Suleimenov emphasized the importance of having a single custodian to protect public funds from market volatility and cyber threats. While details about the reserve's launch date and size are not yet disclosed, ministries and law enforcement will finalize the framework. Kazakhstan's initiative is part of a broader strategy to advance regulated digital finance, especially considering its control of around 13% of the global Bitcoin hashrate and imposition of licensing on mining activities. This move follows significant seizures of unlicensed rigs in 2022 due to energy shortages. Globally, public treasuries are increasingly interested in cryptocurrencies. The U.S. considers a Strategic Bitcoin Reserve, while states like Arizona, Ohio, and Texas have already legislated to hold Bitcoin. In parallel, companies such as Strategy, Metaplanet, and Gamestop have raised funds through equity and debt to accumulate Bitcoin. Meanwhile, businesses like SharpLink and DeFi Development Corp use similar strategies leveraging other cryptocurrencies like Ether and Solana for financial reserves.