Kazakhstan’s Central Bank Plans Up to $300M Crypto Investment Amid Market Turmoil

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The National Bank of Kazakhstan (NBK) is considering investing up to $300 million in cryptocurrency-related assets, but officials say the recent market crash demands a cautious approach. Governor Timur Suleimenov explained during a November 28 briefing that the final investment amount may be significantly lower, possibly only $50 million, $100 million, or $250 million, depending on market conditions. He emphasized that the sharp decline in global crypto valuations—where the market lost about $500 billion since early November and Bitcoin fell 17% from $110,000 to $81,000—requires the central bank to wait for greater stability. The investment would come from the NBK’s gold and foreign exchange reserves, which already include high-tech stocks and digital asset-linked instruments, and not from the country’s sovereign wealth fund. Suleimenov’s latest comments support earlier remarks in which he outlined plans for a national cryptocurrency fund of up to $1 billion, focused on ETFs and shares of crypto companies rather than direct token purchases. This careful stance differs somewhat from President Kassym-Jomart Tokayev’s broader strategy of building reserves of “promising assets” and allocating substantial resources to technology and fintech development. At the same time, Kazakhstan is rapidly expanding its crypto infrastructure, with initiatives such as the Alem Crypto Fund’s first investment in Binance’s BNB token, the approval of stablecoin payments for regulatory fees, the launch of Central Asia’s first spot Bitcoin ETF, and ongoing pilot programs for everyday crypto payments in the planned CryptoCity district in Alatau. The country is also continuing work on the digital tenge, though officials suggest its rollout timeline may change. Alongside this growth, regulators have intensified oversight, shutting down 130 unlicensed exchanges, seizing $16.7 million linked to money laundering, and uncovering 81 illegal cash-out schemes that processed around $43 million this year. Kazakhstan’s mining sector has also shifted significantly, dropping from 27% of global Bitcoin mining to 4% by 2023 due to power shortages and stricter rules, although the country still hosts 415,000 registered mining machines and 84 licensed operators. Despite these developments, the NBK insists it will not rush its investment decisions and will wait for clearer signs of market recovery, underscoring its gradual and measured strategy as Kazakhstan positions itself as a major regional player in digital finance.

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