The Central Bank of Kazakhstan plans to use cryptocurrencies seized from criminals to expand the country's cryptocurrency reserves.

PANews reported on January 30 that, according to DL News, the National Bank of Kazakhstan's investment subsidiary, NIC, announced that it will use cryptocurrencies seized by law enforcement from criminals, along with foreign currency and gold reserves, to expand the newly established national cryptocurrency reserve fund.

Timur Suleimenov, the company's head, stated that $350 million worth of foreign exchange and gold had been allocated as initial capital for the fund. The central bank currently does not plan to directly hold cryptocurrencies, but rather invests through five selected hedge funds and will also invest in cryptocurrency venture capital funds. President Tokayev stated at a meeting of national financial regulatory agencies that police had shut down 130 illegal cryptocurrency exchanges, seizing assets worth over $5 million, and instructed agencies to develop specific proposals to combat cryptocurrency crime.