Kazakhstan Endorses Reserve of Seized Bitcoins

Kazakhstan’s National Bank will establish a state cryptocurrency reserve. This was announced by the regulator’s chairman, Timur Suleimenov, in response to a parliamentary inquiry.

The initiative’s concept is currently being developed with consideration of international practices, and the possibility of transferring management functions to a subsidiary involved in alternative investments is being explored.

According to Suleimenov, placing the reserve under the control of a centralized institution will ensure proper oversight and risk management.

“Sources for such a reserve could include confiscated crypto assets and cryptocurrencies mined by state-participated miners,” the document states.

The creation of a state crypto reserve will require amendments to legislation, as well as consultations with law enforcement and other interested bodies.

The National Bank has urged deputies to join the discussion on the matter.

In March, Binance Kazakhstan’s general manager Nurkhat Kushimov stated in an interview with ForkLog that the country has “a very solid foundation” for creating a bitcoin reserve due to its advanced crypto regulation.

Earlier in June, Kazakhstan’s National Bank approved the issuance of payment cryptocurrency cards linked to wallets on exchanges licensed by the AIFC.