Kazakhstan to Boost Crypto Reserve with Seized Criminal Assets

Kazakhstan’s central bank investment arm will funnel cryptocurrency seized from criminals into a new national crypto reserve fund. The National Investment Corporation (NIC) announced plans to combine confiscated digital assets with foreign currency and gold reserves totaling $350 million.

Kazakhstan’s central bank to bolster national crypto reserves with criminals’ Bitcoinhttps://t.co/LO6mwGGSv2

— DL News (@dlnews) January 29, 2026

The initiative marks Kazakhstan’s renewed push to establish itself as Central Asia’s cryptocurrency hub. NIC head Timur Suleimenov confirmed the fund’s creation during a January 28 media briefing.

The corporation has already opened a dedicated account at Kazakhstan’s Central Depository for crypto-related investments. Rather than purchasing cryptocurrency directly, NIC will route acquisitions through hedge funds.

Five hedge funds have been shortlisted for handling crypto purchases, though their identities remain undisclosed. The investment body also plans to expand into crypto-focused venture capital funds.

Kazakhstan Crackdown Fuels the Reserve

Kazakhstan may already possess up to $5 million in cryptocurrency, according to President Kassym-Jomart Tokayev. Police have shuttered 130 illegal crypto exchanges with combined revenues reaching approximately $124 million.

Officers seized assets exceeding $5 million during these investigations. Tokayev did not specify whether these assets included cryptocurrency directly.

The President addressed the nation’s Financial Monitoring Agency about ongoing challenges. Money laundering through underground cryptocurrency operations has become a serious threat, he stated.

Despite enforcement efforts, advertising for cash-to-crypto exchanges persists across social media platforms. Tokayev acknowledged the problem remains unresolved.

There are virtually no convictions for such crimes, Illegal capital outflow is a direct threat to economic security.

the President said.

He ordered Kazakhstan’s top anti-money laundering body to develop specific proposals for combating crypto-powered crime.

Regulatory Framework Takes Shape

The reserve announcement follows landmark legislation signed by President Tokayev in January 2026. The new law establishes a comprehensive regulatory framework for digital assets in Kazakhstan.

Under the legislation, the National Bank of Kazakhstan gains authority to approve which cryptocurrencies can trade on regulated platforms. Licensed cryptocurrency exchanges must now operate within central bank guidelines.

🇰🇿🚨 KAZAKHSTAN HANDS CRYPTO CONTROL TO CENTRAL BANK

Kazakhstan’s President approved new laws to regulate crypto like $BTC under central bank control.

This will let its National Bank oversee the crypto market and approve which crypto can only be legally traded. pic.twitter.com/DXbSrTZRds

— Coin Bureau (@coinbureau) January 19, 2026

The rules introduce distinct classifications for digital assets. Categories include stablecoins, assets backed by financial instruments or property, and electronic financial instruments.

Bitcoin and similar cryptocurrencies fall under the classification of “unsecured digital assets.” The central bank will maintain an approved list of crypto assets permitted for circulation.

Trading activity limits and operational restrictions will apply to regulated exchanges. These measures aim to protect investors while enabling legitimate crypto activity.

Kazakhstan’s crypto journey has faced significant turbulence. In 2022, crypto miners drew blame for massive power outages affecting multiple regions.

The electricity shortages sparked civil unrest and triggered a government crackdown. Authorities targeted the country’s once-thriving Bitcoin mining industry.

Meanwhile, the new regulatory approach signals a strategic pivot. Kazakhstan now seeks controlled integration of cryptocurrency into its financial system.

The NIC’s investment strategy reflects this balanced approach. By working through hedge funds and venture capital, the corporation maintains distance from direct crypto market exposure.

Following these developments, Kazakhstan positions itself at the forefront of Central Asian crypto regulation. The combination of seized assets and institutional investment creates a unique sovereign crypto reserve model.

The success of this initiative depends on effective enforcement against illegal operations. Tokayev’s acknowledgment of persistent underground exchanges suggests ongoing challenges ahead.