thecryptobasic.com
Kazakhstan has launched its first state-supported cryptocurrency reserve, seeded with Binance Coin (BNB).
The move marks another significant step in the country’s fast-developing digital asset strategy.
On Monday, Kazakhstan’s Ministry of Artificial Intelligence and Digital Development announced the creation of the Alem Crypto Fund. Qazaqstan Venture manages the fund under the Astana International Financial Centre.
The announcement did not reveal the size of the initial investment or whether other cryptocurrencies will be added.
Part of a Wider Digital Push
This launch comes less than a week after Kazakhstan introduced its own Tenge-backed digital currency, KZTE. It is developed on the Solana blockchain in partnership with Mastercard, Intebix, and Eurasian Bank.
In May 2025, the government also revealed plans for “CryptoCity,” a pilot zone where businesses will be able to conduct payments using digital assets.
Earlier this month, President Kassym-Jomart Tokayev urged lawmakers to prepare legislation for a strategic crypto reserve and a comprehensive digital asset ecosystem by 2026.
These initiatives reflect a coordinated effort to position Kazakhstan as a regional hub for digital finance.
Strong Mining Roots, Regulatory Challenges
Kazakhstan’s embrace of digital assets is rooted in its strong position in crypto mining. In 2021, the country ranked second worldwide in Bitcoin hashrate, after China’s mining crackdown redirected operations to Central Asia.
But the growth also triggered regulatory concerns. In 2024, authorities shut down 36 unlicensed exchanges, with President Tokayev calling for stricter oversight and transparent rules. The Alem Cryptocurrency Fund is part of this shift toward state-supervised participation in cryptocurrency, striking a balance between innovation and control.
From Binance Partnership to National Reserve
Kazakhstan has a longstanding collaboration with Binance. In 2022, founder Changpeng Zhao signed a memorandum of understanding with the government to help design a regulatory framework for digital assets. The new fund strengthens that partnership by placing BNB at the center of the reserve’s holdings.
Reports earlier this year suggested the National Bank of Kazakhstan was considering a state-run crypto reserve funded with seized assets and mining revenues. While the Alem Crypto Fund is not a central bank reserve, it signals progress toward that broader goal.
Global Context
In 2021, El Salvador became the first country to launch a state-backed Bitcoin reserve and made Bitcoin legal tender.
Bhutan, though less vocal, has been quietly accumulating Bitcoin through state-backed mining projects since 2019.
Meanwhile, Brazil and Indonesia have been studying potential frameworks for building national reserves of digital assets.