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National Bank of Kazakhstan Plans Up to $300M Crypto Investment

Kazakhstan’s central financial institution is getting ready to make investments up to $300 million in crypto property, although the ultimate allocation might vary between $50 million and $250 million, relying on market circumstances.

According to RBC, National Bank of Kazakhstan (NBK) Chairman Timur Suleimenov introduced the initiative would draw from the financial institution’s international alternate reserves relatively than the nation’s sovereign wealth fund, whereas cautioning that latest crypto market volatility requires a measured strategy earlier than committing capital.

The announcement comes as Bitcoin has declined 17% since early November, dropping from $110,000 to $81,000 and wiping $500 billion from complete crypto market capitalization.

Suleimenov informed reporters the financial institution would “let the mud settle” earlier than making funding choices. He emphasised the problem of reaching profitability amid the sharp downturn.

National Bank of Kazakhstan (NBK) Chairman Timur Suleimenov. | Source: Kazinform International News Agency

Central Bank Adopts Cautious Stance on Digital Asset Exposure

The NBK has already established an funding portfolio containing high-tech shares and monetary devices linked to digital property inside its gold and international alternate reserves.

Despite having frameworks in place, Suleimenov careworn the regulator wouldn’t rush deployment till favorable alternatives emerge.

“Until good funding alternatives emerge, we received’t rush these choices,” Suleimenov mentioned at a November 28 briefing.

The chairman had beforehand informed Bloomberg in early November that Kazakhstan planned to create a national crypto fund worth up to $1 billion, clarifying the financial institution would make investments “cautiously” by means of exchange-traded funds and crypto firm shares relatively than direct token holdings.

This measured strategy contrasts with the broader ambitions articulated by President Kassym-Jomart Tokayev, who directed the creation of a state-backed crypto reserve fund by means of the National Bank’s Investment Corporation.

The president known as for accumulating strategic reserves of “promising property” and introduced up to $1 billion in funding for technological progress packages spanning high-tech and fintech sectors.

Kazakhstan Builds Multi-Layered Crypto Infrastructure

The central financial institution’s funding plans construct on Kazakhstan’s quickly increasing digital asset ecosystem, which launched its first national crypto reserve in September by means of the Alem Crypto Fund.

Established by the Ministry of Artificial Intelligence and Digital Development and managed by Qazaqstan Venture Group, the fund chosen BNB as its preliminary holding by means of a strategic partnership with Binance Kazakhstan.

Deputy Prime Minister Zhaslan Madiyev described the fund as designed to turn into “a dependable instrument for main traders and a key basis for digital state reserves.“

BNB at present has a market capitalization exceeding $120 billion and serves because the native cryptocurrency of BNB Chain for processing transactions, paying community charges, and collaborating in governance.

Kazakhstan approved stablecoin payments for regulatory fees in September throughout Astana Finance Days, with the Astana Financial Services Authority establishing a framework permitting members to settle charges in U.S. dollar-pegged stablecoins by means of licensed Digital Asset Service Providers.

The country also launched Central Asia’s first spot Bitcoin ETF in August, with the physically-backed Fonte Bitcoin ETF buying and selling on the Astana International Exchange, utilizing BitGo Trust for chilly storage.

Enforcement Actions Target Illegal Operations Amid Expansion

While advancing institutional crypto adoption, Kazakhstan has intensified crackdowns on unlicensed operations, shutting down 130 illegal crypto exchanges in October and seizing $16.7 million in digital property suspected of laundering legal proceeds.

Authorities uncovered 81 shadow cash-out teams with a mixed turnover reaching 24 billion KZT ($43 million) in 2024.

The enforcement actions comply with Kazakhstan’s evolution from controlling 27% of global Bitcoin mining in 2021 after Chinese operations relocated, to simply 4% by 2023 following grid pressure and regulatory changes.

As of September, the country has registered 415,000 mining machines, issued 84 licenses (64 lively), and launched the “70/30 challenge,” through which international traders fund energy station upgrades.

During the identical interval, President Tokayev announced “CryptoCity” in Alatau as a pilot zone for on a regular basis crypto funds, that includes a crypto banking system offering alternate, storage, and transaction processing companies whereas supporting anti-money laundering compliance.

The digital tenge, the central financial institution’s digital foreign money, stays scheduled for full rollout by the top of this 12 months as a 3rd kind of foreign money alongside money and non-cash funds. However, the rollout stays unsure this 12 months.

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