Kazakhstan Kicks Off National Crypto Reserve with Binance, Invests First in BNB – $2,000 Next?

Kazakhstan has launched Alem Crypto Fund as its first national crypto reserve, selecting BNB as the initial digital asset through a strategic partnership with Binance Kazakhstan.

The fund was established by the Ministry of Artificial Intelligence and Digital Development, managed by Qazaqstan Venture Group, and registered within the Astana International Financial Centre ecosystem.

BNB Takes Center Stage in Kazakhstan’s Digital Asset Strategy

Deputy Prime Minister Zhaslan Madiyev stated the fund aims to become “a reliable instrument for major investors and a key foundation for digital state reserves,” potentially serving as a vehicle for state-level savings in the future.

BNB currently holds a market capitalization exceeding $138 billion, making it one of the most reputable digital assets globally.

The token functions as the native cryptocurrency of BNB Chain, used for processing transactions, paying network fees, and participating in governance.

Binance Kazakhstan General Manager Nurkhat Kushimov described the selection as marking “a new chapter for institutional recognition of cryptocurrencies in Kazakhstan.”

The initiative builds on President Kassym-Jomart Tokayev’s recent directive to create a state-backed crypto reserve fund through the National Bank’s Investment Corporation.

Tokayev called for accumulating a strategic reserve of “promising assets” and announced up to $1 billion in funding for programs fostering technological growth in high-tech and fintech sectors.

He also pledged to expand the digital tenge for use in republican and local budgets, while establishing an anti-fraud center to address rising cybersecurity threats.

How Kazakhstan Built Its Stablecoin and Bitcoin ETF Infrastructure

Kazakhstan approved stablecoin payments for regulatory fees earlier this month during the Astana Finance Days, with Bybit becoming the first exchange to sign a multilateral Memorandum of Understanding with the Astana Financial Services Authority.

The framework allows participants of the AIFC and registration applicants to settle fees in U.S. dollar-pegged stablecoins through licensed Digital Asset Service Providers acting as payment agents.

AFSA CEO Evgeniya Bogdanova called the project “a first-of-its-kind regulatory framework for payments in stablecoins in the region.”

In July, National Bank Chairman Timur Suleimenov confirmed plans to channel portions of Kazakhstan’s gold and foreign exchange reserves, along with National Fund assets, into crypto-linked investments.

The allocation resembles strategies used by sovereign wealth funds in Norway, the U.S., and the Middle East, which have gained limited exposure through crypto ETFs and related equities.

Suleimenov acknowledged that volatility remains a concern despite potential for high returns, stating, “there is no need to rush here.”

Kazakhstan launched Central Asia’s first spot Bitcoin ETF in August, with the Fonte Bitcoin ETF trading on the Astana International Exchange.

The physically-backed fund managed by Fonte Capital uses BitGo Trust for cold storage custody.

The country also completed pilot testing of its central bank digital currency, with the digital tenge scheduled for full rollout by the end of 2025 as a third form of currency alongside cash and non-cash payments.

From Bitcoin Mining Boom to CryptoCity

Kazakhstan’s crypto journey began in 2021 when Chinese mining operations relocated following Beijing’s crackdown, propelling the country to control 27% of global Bitcoin mining before grid strain and regulatory gaps forced a reduction to 4% by 2023.

The country has since registered 415,000 mining machines, issued 84 licenses with 64 active, and launched the “70/30 project,” where foreign investors fund power station upgrades, allocating 70% of the capacity to the grid and 30% for miners, while generating state-backed digital assets that could supplement the crypto reserve.

President Tokayev announced “CryptoCity” in Alatau, a pilot zone for everyday cryptocurrency payments as a regulated sandbox.

The proposed crypto banking system will provide exchange, storage, and transaction processing services while supporting anti-money laundering compliance.

Kazakhstan’s adoption came as regional countries are also adopting crypto initiatives, particularly through tourism and similar activities.

Bhutan recently partnered with Binance Pay and DK Bank to create the world’s first national-level crypto tourism payment system, enabling payments for airline tickets, visa fees, and hotel stays using over 100 cryptocurrencies across more than 100 merchants.

Thailand also launched its TouristDigiPay scheme in August, allowing foreign visitors to convert crypto into Thai Baht for electronic payments through SEC-regulated digital asset businesses.

Similarly, France’s Riviera region implemented crypto payment options across over 80 businesses through Binance Pay’s partnership with fintech company Lyzi, serving hotels, restaurants, and luxury retailers in Cannes, Nice, Antibes, and Monaco.

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