Kazakhstan to Launch National Crypto Reserve, Digital Asset Law by 2026

TLDR

• Kazakhstan’s President Kassym-Jomart Tokayev proposes creating a national crypto reserve as part of digital asset development plans.
• Tokayev calls for the establishment of a new digital asset law, aiming for completion by 2026.
• The president suggests forming a State Fund of Digital Assets, to be based on the National Bank’s Investment Corporation.
• Kazakhstan plans to make Alatau the first fully digitalized city, integrating crypto payments for everyday transactions.
• Tokayev aims to regulate the country’s growing crypto mining industry, addressing illegal operations and power grid strain.

Kazakhstan’s President, Kassym-Jomart Tokayev, has announced plans for a national crypto reserve and a new digital asset law. During his annual address, Tokayev outlined a strategy to create a “full-fledged ecosystem of digital assets” in the country. He emphasized the urgency of developing this ecosystem to maximize the return of bank money to the economy.

The president proposed that Kazakhstan’s Agency for Regulation and Development of the Financial Market draft a law by 2026. He stressed the importance of passing this law soon to regulate digital assets effectively. According to Tokayev, the law would help create a robust infrastructure for digital assets, positioning Kazakhstan as a leader in the sector.

Kazakhstan Plans State Fund for Digital Assets

One of Tokayev’s most significant proposals is the establishment of a national crypto reserve. He suggested creating a State Fund of Digital Assets, which would be based on the National Bank’s Investment Corporation. This fund would accumulate a strategic crypto reserve, consisting of promising assets from the new digital financial system.

Kazakhstan’s move toward a crypto reserve follows reports that the national bank was considering one. In the past, the government has seized digital assets, sparking discussions about using them for a national reserve. Tokayev’s plan aligns with similar efforts in other countries, such as the United States, which established a crypto reserve under an executive order by President Trump.

Crypto Mining Surge Strains Kazakhstan’s Power Grid

Tokayev also shared plans for a pilot zone in Kazakhstan where crypto could be used for everyday transactions. Alatau, a city in southeastern Kazakhstan, is expected to become the country’s first fully digitalized city. The city will focus on integrating crypto payments to showcase Kazakhstan’s future in digital finance.

“This city will represent the future of Kazakhstan,” Tokayev said. He highlighted that Alatau would combine technological progress with optimal living conditions. The move is part of Kazakhstan’s broader ambition to become a global hub for digital assets, especially cryptocurrencies.

Kazakhstan’s favorable regulatory environment and low electricity costs have made it a key player in global crypto mining. The country previously accounted for about 13% of Bitcoin’s global hashrate. However, the surge in mining led to illegal operations, putting strain on the country’s power grid.

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