Kazakhstan considers national cryptocurrency reserve to curb illegal trading

Lawmakers urge creation of digital reserve under Central Bank as most crypto turnover flows through unregulated platforms

ASTANA, Kazakhstan (MNTV) — A Kazakh lawmaker has proposed the creation of a national cryptocurrency reserve under the country’s central bank in a move aimed at tightening oversight of digital assets and protecting the financial system from illicit activity.

Speaking during a plenary session of Kazakhstan’s lower house of Parliament, the Mazhilis, Deputy Olzhas Kuspekov said a state-managed reserve would help address persistent regulatory loopholes and bolster public trust in the financial system. The comments were reported by local media outlet DKnews.kz.

Kuspekov warned that the proliferation of unlicensed crypto platforms and lax internal banking controls were fueling systemic risks. 

He cited findings from the Financial Monitoring Agency indicating that over 4.2 billion Kazakhstani tenge ($9.5 million) in crypto-related transactions were processed through ten second-tier banks operating beyond legal parameters.

“Internal control mechanisms are being neglected,” the deputy said, noting that unauthorized exchanges remain widely accessible through app stores and social media, despite legal bans. “In 2023, more than 86 percent of Kazakhstan’s crypto turnover — roughly $3.5 billion — came from the illegal segment.”

Kuspekov’s proposal includes storing confiscated digital assets in a central reserve and enacting sweeping regulatory reforms. These include mandatory licensing for so-called “investment coaches,” mechanisms to block violators’ accounts, stricter internal bank audits, and publishing a list of legally authorized crypto platforms. He also called for blocking access to unlicensed exchanges and mobile applications.

The idea follows a recent rejection by the National Bank of a similar proposal from the Ak Zhol parliamentary faction, which sought to establish a separate “Crypto Bank” and legalize a crypto-tenge, a digital version of the national currency.

The state crypto reserve initiative has drawn support from some industry leaders. Nurkhat Kushimov, General Manager of Binance Kazakhstan, said the proposal could mark a turning point for the sector.

“It’s encouraging to see policymakers prioritize cryptocurrency regulation,” Kushimov said. “While legislative changes will take time, this initiative could bring much-needed clarity and help develop a robust legal framework for Kazakhstan’s digital asset ecosystem.”

The proposal is still under parliamentary review but is being seen as a potential milestone in Kazakhstan’s efforts to formalize its fast-growing but largely unregulated crypto market.