Kazakhstan Launches Crypto Reserve Fund Using Seized Assets and Mining Revenues
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The post Kazakhstan Launches Crypto Reserve Fund Using Seized Assets and Mining Revenues appeared first on Coinpedia Fintech News Kazakhstan is moving toward one of its biggest digital finance projects yet, creating a crypto reserve fund worth up to $1 billion by early 2026. According to Bloomberg, the government plans to build this reserve using seized and repatriated assets connected to past financial crimes, along with funds collected from crypto-mining activities. Instead of letting these digital assets sit unused, Kazakhstan wants to redirect them into productive national investments. The planned reserve will not directly hold Bitcoin or other cryptocurrencies. Instead, it will invest in exchange-traded funds (ETFs) tied to crypto markets and into crypto-focused companies, including those working on blockchain technology and digital infrastructure. This approach allows Kazakhstan to benefit from the growth of the crypto sector without exposing the fund to the extreme price swings seen in tokens like Bitcoin. A Smarter Way to Use Crypto Assets Kazakhstan’s government describes this fund as more than just a financial project. It’s a strategic move to boost economic sovereignty. For years, the country has dealt with illegal financial flows linked to digital assets and mining farms operating without proper regulation. By turning seized assets into a government-backed investment tool, officials say they are transforming risk into value. The initiative supports Kazakhstan’s ongoing digital transformation strategy, which aims to modernize its economy through blockchain adoption and fintech integration. The fund is expected to enhance national security by ensuring that confiscated funds are redirected toward state-controlled initiatives rather than lost to legal battles or corruption. AIFC to Lead the Project The Astana International Financial Centre (AIFC), Kazakhstan’s fintech and investment hub, will manage the reserve. The AIFC is already home to crypto exchanges and blockchain startups operating under licensed frameworks, making it the…
Filed under: News - @ November 8, 2025 10:32 am