Kazakhstan’s central bank plans to bolster a new national crypto reserve using bitcoin seized from criminals alongside gold and foreign currency assets.
The National Investment Corporation, the investment arm of the National Bank of Kazakhstan, has earmarked $350 million in overseas currency and gold for the initial phase of the fund.
The reserve will also include crypto confiscated by law enforcement agencies, as authorities intensify efforts to control illegal digital asset activity.
The move comes as Kazakhstan seeks to re-establish itself as a Central Asian crypto hub after a 2022 crackdown that followed power shortages blamed on bitcoin mining.
The investment arm has opened a dedicated account at the country’s Central Depository and said it will initially gain exposure through hedge funds and crypto-focused venture capital funds rather than holding tokens directly.
President Kassym-Jomart Tokayev said law enforcement has shut down 130 illegal crypto exchanges with revenues of about $124 million and seized assets worth more than $5 million.
“Money laundering and the illegal withdrawal of money through underground cryptocurrency operations have become a serious problem,”
Tokayev said, as he ordered authorities to step up enforcement.
At the time of reporting, Bitcoin price was $82,431.43.