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Key Takeaways
National Crypto Reserve: Kazakhstan plans to establish a state-backed digital asset reserve, partly funded by seized cryptocurrencies and local mining operations.
Digital Asset Law: The government will introduce comprehensive legislation on digital assets by 2026 to create a regulated and competitive market.
CryptoCity Vision: President Tokayev unveiled plans for a pilot “CryptoCity” in Alatau, where digital currencies could be used for everyday transactions.
President Kassym-Jomart Tokayev proposed a groundbreaking initiative: establishing a State Fund of Digital Assets under the National Bank’s Investment Corporation in his state-of-the-nation address.
Overview
In an annual address on September 8 2025, Tokayev urged the government to build a comprehensive digital asset ecosystem without delay as part of broader efforts to identify efficient methods to channel bank funds back into the economy.
He said, “It is advisable to create a State Fund of Digital Assets on the basis of the National Bank’s Investment Corporation. This structure will accumulate a strategic crypto reserve consisting of promising assets in the new digital financial system.”
This fund would accumulate a strategic crypto reserve made up of “promising assets in the new digital financial system.” It marks a bold divergence from conventional reserve strategies, positioning Kazakhstan among the first nations to consider formalising digital assets within sovereign financial frameworks.
This proposed reserve would draw upon two unique sources: confiscated cryptocurrencies and state-linked mining operations, leveraging legal windfalls and domestically produced digital assets. The National Bank emphasised the necessity of centralised institutional oversight to manage inherent volatility and security risks, citing international best practices in sovereign fund management.
Drafting Digital Asset Legislation Ahead of 2026
President Tokayev directed the Agency for Regulation and Development of the Financial Market to prepare comprehensive legislation on digital assets, aiming for adoption before 2026. This legislative push is part of a broader plan to build a “full-fledged ecosystem of digital assets” and more effectively channel bank funds into the economy.
The planned law is expected to liberalise the digital assets market, foster fintech growth, and enhance competition within the banking sector. Aligned with these goals, the National Bank has initiated a digital asset regulatory sandbox—a controlled environment to pilot digital finance innovations, including tenge-backed stablecoins, tokenised assets, and crypto-to-fiat conversion services.
These regulatory steps build upon Kazakhstan’s existing crypto framework, including Law No. 193-VII (2023), which legalised crypto mining activities and set licensing frameworks for exchanges. Further, authorities are cracking down on illicit operations while ensuring licensed providers operate under stringent compliance standards.
CryptoCity: A Digital Vision Meets National Finance
Complementing the national crypto reserve and legal groundwork, President Tokayev unveiled ambitious plans for “CryptoCity”—a pilot smart city in Alatau, envisioned as Kazakhstan’s first fully digitalised city where cryptocurrencies would be accepted for goods and services.
Designed to showcase technological progress and desirable living standards, this project is meant to symbolise the future Kazakhstan seeks—a fusion of innovation, convenience, and economic modernisation.
This vision dovetails with the broader strategy to elevate Kazakhstan as a regional crypto hub, capitalising on its existing strengths—its substantial Bitcoin mining capacity (around 13% of the global hashrate) and its improving regulatory infrastructure. Kazakhstan’s recent policy announcements reflect a transformative leap forward in its digital finance agenda.
The president’s call for a national crypto reserve, supported by seized assets and domestic mining, breaks new ground in sovereign asset management. The mandated drafting of digital asset legislation by 2026 reinforces this ambition, promising a legal foundation for market liberalisation and fintech engagement. Finally, the CryptoCity pilot underscores an integrated innovation, infrastructure, and financial modernity model.
These initiatives position Kazakhstan as one of the first nations to seriously integrate digital assets into state-level strategy, balancing technological innovation with institutional governance. They chart a path that could redefine how public reserves and financial systems function in the digital era.